Inheritance tax receipts for April 2026 to June 2026 are £2.3 billion, £96 million higher than the same period last year, as changes to IHT rules bring more estates into scope – with more to come.
“The planned changes taking effect in the 2027/28 tax year will bring most unused pension funds into IHT calculations,” Corrinne Emmett, senior business development manager at ZEDRA warned.
“The nil rate band has remained frozen at £325,000 since 2009 and is currently set to remain unchanged until 2030, which means that more estates than ever before will be subject to IHT. As a result, people are naturally becoming more concerned about the potential impact of IHT on their estates, and their ability to pass on hard-earned wealth to future generations or chosen beneficiaries.”
She added: “With the rules evolving and thresholds remaining static, IHT planning is no longer just for those with very large estates. Taking advice early and reviewing arrangements regularly can make a significant difference in preserving wealth and achieving your long-term objectives.”
Shaun Moore, tax and financial planning expert at Quilter, said the long-term picture is one of rising tax exposure. “Frozen thresholds and growing asset values continue to pull more estates into the scope of inheritance tax,” he explained.
“With Andy Burnham now established as prime minister, questions around the future direction of wealth taxation are likely to intensify. Burnham has previously argued for reform of wealth taxes and has expressed support for alternatives to the current inheritance tax system, although any significant changes would need to be carefully balanced against the government’s wider economic priorities.
“There is already speculation about whether ministers could revisit aspects of estate, property or wealth taxation as they search for revenue. While such discussions are likely to continue, families should be cautious about making planning decisions based on rumours rather than policy. The reality is that major reforms often take time to develop and implement.
“In the meantime, the direction of travel is already well established. Frozen thresholds and the inclusion of pensions from April 2027 point towards steadily rising liabilities, placing greater emphasis on early and proactive estate planning based on the known rules. With just a matter of months before pensions become liable to IHT it is worth reviewing plans to see if they are fit for the future.”
The lack of awareness is as concerning as the rising taxes, according to Amit Joshi, managing director of wealth at Mattioli Woods.
“Rising property values and inflation are quietly turning what was once a tax for the wealthy into a bill for ordinary households,” he pointed out. “Estates that would have paid nothing a decade ago are now automatically liable, without a single announcement.
“What is most concerning isn’t the tax itself, but the lack of awareness. Families often only realise the impact when it’s too late to act. Inheritance tax has become a planning issue by stealth, and the cost of inaction is measured in lost choices, rushed decisions, and unnecessary tax.
“Regularly reviewing wills and estate plans, and seeking professional financial advice, is no longer optional. It’s essential to protect family outcomes, preserve control, and ensure hard-earned wealth goes where it was intended, not where it happens to land.”
