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UK inheritance tax receipts reached an estimated £8.2bn in the 2025/26 tax year — a record, and up roughly ~52% in seven years. Around ~5% of UK estates pay any IHT, but the share rises every year that the £325K nil-rate band stays frozen against rising property values. The freeze extends to April 2030.
HMRC publishes inheritance tax receipts monthly in its tax & NIC receipts bulletin. The annual totals show a steady climb — every year except 2019/20 (early COVID, deaths shifting later in accounting periods) has set a new record.
| Tax year | IHT receipts (£bn) | Status |
|---|---|---|
| 2018/19 | £5.4bn | Final confirmed |
| 2019/20 | £5.3bn | Final confirmed |
| 2020/21 | £5.4bn | Final confirmed |
| 2021/22 | £6.1bn | Final confirmed |
| 2022/23 | £7.1bn | Final confirmed |
| 2023/24 | £7.5bn | Final confirmed |
| 2024/25 | £8.0bn | Final confirmed |
| 2025/26 | £8.2bn | HMRC central estimate |
The total UK Treasury take from inheritance tax has grown by roughly ~52% since the £325K nil-rate band freeze was extended in 2021 — without any change to the headline 40% rate.
The headline growth isn't down to a tax rise — the 40% rate and £325Kthreshold have been unchanged for years. What's shifted is which estates fall above the line. Five drivers explain almost all the growth:
Use our free IHT calculator to estimate where a specific estate sits against the £325K + £175K combined threshold.
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Rising receipts have second-order effects on executor work that most coverage ignores:
For the practical knock-on — how long IHT400 review actually takes when more estates are queuing — see our HMRC processing times for deceased estates guide.
From 6 April 2027, most unused pension funds will become IHT-chargeable on death. This was confirmed in the 2024 Autumn Budget after a long period where pension wealth sat outside the estate for IHT purposes.
Practical implications:
We track the upcoming rule change and full IHT 2026/27 detail in our inheritance tax complete guide.
UK IHT receipts reached an estimated £8.2bn in the 2025/26 tax year, up from £5.4bn in 2018/19. The total has grown roughly ~52% over seven years — entirely through fiscal drag, not policy changes.
Around ~5% of UK estates owe any inheritance tax. The share has been creeping up year on year as more estates exceed the frozen £325K nil-rate band — and is forecast to rise further when pension pots become IHT-chargeable in April 2027.
Fiscal drag. The nil-rate band has been frozen at £325K since 2009 (until April 2030); property and other asset values keep rising. The result is that more estates cross the threshold each year, increasing total receipts even though the percentage of estates paying is still small.
HMRC and the OBR both forecast continued growth. The April 2027 inclusion of unused pensions in IHT estates is expected to lift receipts by £1bn+ annually once it beds in. Without an unfreeze of the £325K nil-rate band before April 2030, fiscal drag continues regardless.
HMRC publishes a monthly "Tax & NIC receipts" bulletin on GOV.UK that includes IHT alongside other taxes. The figures are confirmed quarterly. Annual totals appear in HMRC's Inheritance Tax statistics collection. Farra tracks the headline number on our UK Bereavement Statistics hub.
1 in 3 probate applications are sent back. IHT errors are the most common reason.
Answer 5 questions in under 2 minutes. We'll calculate your inheritance tax position — nil-rate band, RNRB, spouse exemption, any gifts — and tell you which forms to file.
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