HMRC's revenues and customs revealed that IHT tax receipts amounted to 7 billion pounds between April 2024 and January 2025-700 million pounds more than it was during the same period last year-where the government benefited from the path for another year of record to destroy IHT revenues.
With 7.499 billion pounds, it was collected in the tax year 2023-24, the latest figures indicate that this total will exceed before the end of the current tax year in April.
“The inheritance tax is still a meal ticket for HMRC. It may only affect a small percentage of real estate, but this number grows,” said Nicholas Heit, investment manager at the Wealth Club Club.
Budget Responsibility Office (OBR) predicts that approximately 10 % of real estate will be responsible for IHT by 2030, driven by high real estate prices, frozen thresholds and the gradual removal of some inscriptions.
The main IHT allowance has been frozen 325,000 pounds since 2009 and will remain unchanged until 2030. The range of 175,000 pounds has been fixed since its introduction in 2020.
With the presence of the new inheritance tax rules that were announced in the fall, they did not come into effect-especially those that restrict the inscriptions of the commercial assets listed in the list of goals-warn experiences that effective real estate planning has become increasingly complicated.
“The inheritance tax has become more difficult to avoid it, especially for business owners and investors. The inscriptions are shrinking, while the values of assets rise.”
However, effective tax planning opportunities still exist. Life gifts – especially normal gifts made of excess income – raises a very effective strategy. “It is a common approach with grandparents who help in school or university fees,” Heit said. “Avoid tax duplication through IHT is a nice added sweetener.”
With IHT revenues and planning methods of planning, families are urged to seek early advice to protect their property from fixing tax obligations.