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2w ago

UK Inheritance Tax Hits £6.7bn Record as HMRC Pursues 31,000 Families

Fiscal drag from frozen inheritance allowances is widening the tax base.

Inheritance tax on farms is set to further boost the Treasury’s income from the levy
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Overview

  • HMRC data shows 31,500 estates were liable for IHT in 2022-23, a 13% rise that generated a record £6.7bn for the Treasury.
  • The share of UK deaths triggering an IHT charge climbed to 4.62%, reflecting 3,700 more estates than the previous year.
  • The nil-rate bands have remained frozen since 2009, intensifying fiscal drag that draws more estates into liability.
  • Abolishing agricultural and business property reliefs from April 2026 is expected to widen the tax base and boost revenues by about £500m annually.
  • Defined contribution pension pots will become taxable from April 2027, with the OBR projecting IHT receipts to top £14bn by 2029-30.