HMRC IHT and CGT receipts remain high despite falls in April

The government’s inheritance tax (IHT) and capital gains tax (CGT) receipts fell year-on-year in April 2026, although both remained at elevated levels, HMRC’s latest tax receipts data has shown.

IHT take fell from £780m in April 2025 to £715m in April this year, representing a decline in receipts following months of continued increases.

Despite the fall, the tax continues to bring in elevated levels of money for the government, with Evelyn Partners head of estate planning, Ian Dyall, stating that the reduction was likely to be a short-term fluctuation rather than a change in the broader upward trend.

This was the last April in which unused pension pots will be outside the scope of IHT, with pensions set to be brought within the taxable estate from April 2027.

“As a result, next tax year IHT receipts are expected to rise sharply, with these figures likely to look modest in hindsight,” commented Quilter tax and financial planning expert, Rachael Griffin.

“Combined with frozen thresholds and ongoing pressure from property values, the trajectory for IHT remains firmly upwards, placing even greater emphasis on early and proactive estate planning.

“Making use of the meagre but still useful gifting allowance and taking a holistic view of your wealth remains paramount.”

Meanwhile, HMRC’s update showed that CGT receipts totalled £162m in April 2026, down from £191m in April last year.

Last year saw a record CGT tax with £22.2bn, smashing the previous record-high of £16.9bn, while the Office for Budget Responsibility forecast for CGT receipts is £27.3bn by 2029/30.

“Although CGT receipts for April were slightly lower than the same month last year, CGT continues to generate record revenues for the Treasury as higher rates introduced at the Autumn Budget 2024, combined with fiscal drag, draw more individuals into the CGT net,” said Utmost head of UK technical services, Simon Martin.

“As property, investment and business asset values rise, more gains are exceeding lower exemption thresholds.

“With the government freezing CGT thresholds and allowances for a prolonged period, inflation and asset price growth are steadily pushing more individuals and businesses into higher tax bands. This fiscal drag effect is likely to drive a sustained increase in CGT revenues over the coming years.

“This record tax burden continues to harm the UK’s competitiveness among the wealthy, who are looking at international options with increasing frequency, risking a smaller overall tax base for the UK.”

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