The latest HMRC data reveals that inheritance tax receipts for April 2026 were £0.7bn, £65m lower than the same period last year.
Commenting on the latest figures, Ian Dyal, head of estate planning at Evelyn Partners, said: “While April 2026 saw a slight decline in IHT receipts, this is likely to be a short-term fluctuation rather than a change in the wider upward trend.
“This decline comes at a time when families who have accumulated wealth may not be focusing on the headlines. Although there are many hurdles to clear before the Prime Minister can be replaced in the leadership contest, there is already emerging speculation about what this could mean for tax policy.”
He added: “Since then.” Sir Keir Starmer’s position Having become so precarious, it seemed likely that his replacement would come from further to Labour’s left – with Andy Burnham currently the favorite, if he wins his by-election.
“Add to this the unexpected intervention of former Health Secretary Wes Streeting this week on equalizing capital gains tax with income tax – as well as the continuing fragility of the UK’s public finances – and it is perhaps not surprising that some families are starting to fear that increasing wealth taxes is on the table, even after tax rises in this government’s first two budgets.
Dyal said it was not impossible that IHT and the gifting scheme would feature in such discussions and noted that there was certainly a desire in the Treasury to target estates, as seen in the substantive changes to IHT reliefs and reliefs in the October 2024 Budget. “Business reliefs have already been capped, but it will take some time before we can see how this can increase IHT liabilities – and by then unspent pension assets will be subject to IHT as well,” Dyal said.
Will Hill, chief executive of Major Equity Issuers, insisted that the slight decline in IHT receipts in April compared to the same period last year should not distract from the longer-term picture.
“An unrelenting increase in IHT revenues is expected due to a combination of rises in asset values and government decisions in various recent financial events to maintain tax-free thresholds at their 2020 to 2021 levels through 2030 to 2031. This tax raid on wealth has significant implications for financial planning in general and estate planning in particular, with real estate equity and subsequently lending playing an increasingly central role.
“Rising house prices have been a key factor in IHT revenue growth and real estate wealth must now be a central consideration in effective IHT planning. The unused defined contribution funds coming into scope for IHT purposes from 6 April next year should prompt all clients and advisers to consider wealth accumulation strategies and the sequence of how assets are used in the accumulation phase.”
