Families have been hit with one of the highest ever monthly inheritance tax bills, as new figures show HMRC collected £780m in April 2025 alone.
The sharp rise comes amid warnings that "further reforms" under the Labour Government will drag even more households into the inheritance tax (IHT) net.
April's figure, released this morning by HMRC, is the second-highest monthly IHT total on record and £97 million more than the same time last year. It marks the start of the new financial year with a steep increase and follows a record £8.2 billion haul in 2024/25.
The Office for Budget Responsibility (OBR) now predicts that IHT will raise £9.1bn in 2025/26 and climb to more than £14bn a year by the end of the decade.
Stephen Lowe, director at retirement firm Just Group, said the rise was no surprise given the squeeze on allowances. He said: "The Treasury has enjoyed four years on the trot of record Inheritance Tax 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 Inheritance Tax haul even further over the coming years, especially proposed changes to the treatment of pension death benefits later this decade."
High-income Britons are slamming Labour over their changes to inheritance tax GETTY Shaun Moore, tax and financial planning expert at Quilter, echoed this sentiment, warning that the rise is part of a broader trend driven by frozen thresholds and inflation.
He said: "HMRC’s latest figures mark the start of a new tax year, but the story remains much the same. The Government’s stealth tax strategy is still quietly drawing in ever-growing sums. With property prices remaining high and nil-rate bands still frozen until 2030, more families are being caught by IHT, many without realising until it’s too late."
He also warned that the further reforms to come changes - including reductions in business and agricultural relief and the inclusion of unused pensions in estates – will only widen the net.
HMRC update shows that Inheritance Tax (IHT) receipts recorded a total of £780 million in April 2025
GETTYAnyone who is concerned their estate may be subject to IHT are urged to 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, experts advise.
Moore said: "For those who are worried about IHT, gifting remains the best defence against it, but this should be weighed against your own needs."
Labour’s leaked proposals suggest more tax changes could be on the horizon
GETTYLabour’s leaked proposals suggest more tax changes could be on the horizon, including the return of the pensions lifetime allowance and tighter rules on dividends and corporate profits.
Tax experts say this could make the UK’s fiscal environment tougher, especially for savers and those passing on wealth.
As the tax burden creeps upward through thresholds that remain frozen, households are being urged to plan ahead and seek advice to protect family wealth from future changes.
