Overview
- HMRC data show £4.4bn collected in inheritance tax between April and September 2025, up £100m year on year for a 2.3% rise.
- The main £325,000 nil‑rate band and £175,000 residence band have been frozen for years, increasing liabilities as property and asset values rise.
- From next year, full Agricultural and Business Property Reliefs are set to be capped at £1m per individual before dropping to 50% relief over that level, with unused pension pots due to be included in estates from April 2027.
- Experts report speculation that the Chancellor could tighten gifting rules—such as extending the seven‑year window or adding a lifetime gifting cap—though no decisions have been announced.
- The OBR projects a record annual take, with £9.1bn expected this tax year, while advisers urge use of current allowances like the £3,000 annual gift, gifting from surplus income, trusts, and life insurance written in trust.