IHT tax receipts hit highest level on record as families face growing estate planning challenge
London, 21 July 2026: Inheritance tax (IHT) receipts have reached their highest monthly level on record, according to the latest HMRC figures, with the Treasury collecting £2.3 billion between April and June 2026 - £96 million more than during the same period last year. The figures underline the growing number of families being drawn into the inheritance tax net as the UK enters a new political era under Prime Minister Andy Burnham.
HMRC said receipts continue to rise due to a combination of frozen tax free thresholds, rises in asset values and a growing number of wealth transfers following recent deaths.
Maike Currie, VP Personal Finance PensionBee, comments: “The latest tax receipts figures come at a significant moment for tax policy. With Andy Burnham beginning his premiership against a backdrop of stretched public finances, an ageing population and rising demands on public spending, attention is increasingly turning towards how accumulated wealth will contribute to future tax revenues.”
The latest projections from the Office for Budget Responsibility (OBR) suggest IHT receipts will continue to rise over the remainder of the decade. With pensions due to form part of many estates for inheritance tax purposes from April 2027, more people are likely to find themselves balancing two questions: how to make their pension last throughout retirement and how much of it they want to leave behind for loved ones.
Maike Currie, VP Personal Finance at PensionBee, adds: “For some households, pensions have done two jobs: providing an income in retirement while also helping pass wealth to the next generation. Bringing most unused pension funds within the scope of inheritance tax from next April changes that equation and is prompting many people to rethink both their retirement and estate planning.
“Andy Burnham inherits difficult public finances and a nation fatigued by a high cost of living challenge. He has already hinted at reviewing the long-running freeze on the income tax personal allowance as he looks to find ways to ease pressure on UK households. For some families, pensions could also become subject to both inheritance tax and income tax. Depending on when someone dies and who inherits their pension, beneficiaries may face inheritance tax on the estate and then income tax when they draw money from the pension.”
The wider tax picture also points to growing receipts for the Treasury. HMRC collected £227.7 billion in tax and National Insurance contributions between April and June 2026, £16.6 billion more than during the same period last year, with the largest increases coming from Income Tax, Capital Gains Tax and National Insurance contributions. As Prime Minister Andy Burnham weighs how to balance pressure on the public finances with his commitment not to increase the main rates of tax, the latest figures underline the impact of fiscal drag and asset growth in boosting Treasury revenues.
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