Overview
- Inheritance tax thresholds remain frozen until 2030, reducing their real value as asset prices rise.
- Private pensions will be included in inheritance tax calculations starting April 2027, significantly broadening the tax base.
- HMRC recorded a record £8.2 billion in inheritance tax receipts for 2024–25, with projections of an additional £14.3 billion by 2029–30.
- The number of pensioners paying higher tax rates has doubled in four years, with over one million now facing 40% or higher income tax rates due to fiscal drag.
- Surveys reveal widespread public unawareness of inheritance tax rules, with many families unprepared for the financial impact of upcoming changes.