Inheritance tax haul grows as more families are dragged into the tax net

Inheritance tax receipts started the 2026/27 tax year more slowly, with HMRC collecting £0.7 billion in April, £65 million less than the same month the previous year. Receipts remain historically high after a record £8.5 billion haul in the prior tax year, suggesting another strong year of revenue. The long-term increase is linked to frozen thresholds, rising house prices, and changes to inheritance tax reliefs that bring more estates into the tax net. Although inheritance tax is often seen as affecting only the super wealthy, estimates suggest almost 10% of estates could face liabilities by 2030. The largest estates still contribute most receipts, with 1% of estates accounting for about 65% of tax paid.

""Inheritance tax has become one of the Treasury's most effective stealth taxes. Although receipts dipped slightly in April compared with the same month last year, the government's take from bereaved families remains exceptionally high and is still on course for another record-breaking year. The government has struggled with inheritance tax reforms with crackdowns on farmers and business owners proving deeply unpopular, while years of frozen allowances mean more ordinary families are quietly being pulled into the inheritance tax net through stealth taxation.""

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