Overview

• HMRC took £3.7 billion in inheritance tax between April and August 2025, up £190 million or 5% year on year.
• The OBR projects about £9.1 billion of inheritance tax for 2025/26 after last year’s record take, with further increases expected.
• Nil‑rate bands remain frozen to 2030, business and agricultural reliefs are due to be reduced from April 2026, and defined contribution pensions will be included in estates from April 2027.
• Over‑55s unlocked £636 million of property wealth in 2025, Equity Release Council data shows, with larger lump sums and continued demand for drawdown plans.
• Brokers report more parents and grandparents gifting funds during their lifetimes to manage future liabilities, while the Treasury says over 90% of estates will continue to pay no inheritance tax.