Overview

• HMRC opened nearly 4,000 inheritance tax probes in the 2024-25 tax year, a 41% increase on the previous year, using advanced data analytics to uncover undervalued estates.
• Inheritance tax receipts reached a record £6.7bn in 2022-23, a 12% rise on the prior year, while the OBR forecasts receipts of £8.4bn for 2024-25 and £9.1bn for 2025-26.
• The £325,000 nil-rate band has been frozen since 2009 and the £175,000 residence nil-rate band since 2020, pulling more estates into the tax net as property, equity and pension values climb.
• Households risk 8.25% annual interest on overdue liabilities and face traps from gifts made within seven years of death or from ineligibility of unmarried partners for spousal relief.
• Private pensions are set to be included in the inheritance tax base from April 2027, potentially adding billions to revenues and intensifying demand for new planning strategies.