The government’s inheritance tax (IHT) receipts reached £780m in April 2025, the second highest monthly total on record, the latest figures from HMRC have shown.

This represents an increase of £97m compared to the same month in 2024.

The previous financial year (2024/25) saw the government take in a record £8.2bn in IHT.

IHT receipts have been steadily increasing, hitting four consecutive years of all-time highs, with the nil-rate band and residence nil-rate band remaining frozen until 2030.

The latest forecast from the Office for Budget Responsibility (OBR) estimated IHT would raise £9.1bn for the government this financial year, rising to over £14bn by the end of the decade.

Capital gains tax (CGT) receipts fell between March and April, but still raised £191m in April 2025, marking the highest ever first month of the financial year.

Commenting on the latest HMRC figures, Just Group director, Stephen Lowe, said: “The Treasury has enjoyed four years on the trot of record IHT receipts and this April’s figures show a rapid start to 2025/26 with the tax raising over three quarters of a billion pounds this month alone.

“Rising IHT receipts to-date have been driven by the pincer movement of the ongoing freeze on thresholds alongside growth in asset prices. Further reforms announced at the Autumn Budget are likely to accelerate the IHT haul even further over the coming years, especially proposed changes to the treatment of pension death benefits later this decade.

“Anyone who is concerned their estate may be subject to IHT should make an up-to-date valuation of their estate, including a recent assessment of their property wealth, to understand if they may be liable to IHT. Estate planning is complex and many people who want to manage their estate efficiently will benefit from professional financial advice.”

Evelyn Partners head of estate planning, Ian Dyall, added: “The 2025/26 financial year opens where the previous one left off, with a predictable and substantial annual rise in IHT receipts. Estimates last month revealed that IHT receipts for the 2024/25 financial year were 10.8 per cent up on the previous one, and there’s nothing to suggest the current one will be any different.

“What has stirred up some interest in the government’s intentions for IHT – aside from those announced at the October Budget – is the memo from the Deputy PM to the Chancellor leaked this week.

“That called for – among other tax rises - IHT relief on AIM shares to be removed altogether, which would go further than the current cut to 50 per cent due for April 2026, and would save the Treasury £1bn.

“Whether this suggestion carries any weight with the Chancellor is unknown, but with the PM also rowing back on cuts to the Winter Fuel Allowance this week, questions are bound to arise around tax if the fiscal outlook doesn’t improve before the Autumn Budget.

“Some in government obviously see the passing on of estates as a legitimate target for tightening up the tax net, so whether or not there are any changes to IHT reliefs at the next Budget, it would be surprising if we got to the next election without any.”

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