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UK Inheritance Tax Takes £4.4bn in Half-Year as Receipts Head for New Record

Frozen allowances are pulling more families into scope as ministers weigh further inheritance-tax changes before the 26 November Budget.

Overview

  • HMRC collected £4.4bn in inheritance tax between April and September 2025, £100m more than a year earlier, keeping revenues on track for another annual high.
  • The Office for Budget Responsibility forecasts around £9bn in receipts this year and more than £9bn by 2026, rising toward roughly £14bn by 2030.
  • Long‑frozen thresholds — the £325,000 nil‑rate band and the £175,000 residence band — are dragging more estates into tax as property and asset values increase.
  • Confirmed changes include capping Agricultural and Business Property reliefs from April 2026 and counting unused pension pots within estates from April 2027.
  • Ahead of the Autumn Budget, reports indicate the Chancellor is considering tighter gifting rules, potentially extending the seven‑year window to ten years.