Overview

• HMRC collected £3.06 billion in inheritance tax between April and July 2025, about £200 million more than the same period a year earlier, according to new figures.
• The Chancellor is reported to be scrutinising the 'normal expenditure out of income' exemption that currently allows unlimited regular gifts to be made free of IHT if funded from surplus income.
• Financial advisers say ministers have floated introducing a lifetime cap on tax‑free gifts, potentially £100,000 to £200,000, and removing taper relief on gifts made within seven years.
• From April 2027, unspent defined‑contribution pensions are set to be included in estates for IHT purposes, changing how inherited pension pots are taxed.
• Advisers urge families to document regular gifts, review estate plans and seek guidance while awaiting any policy decisions expected ahead of the Autumn Budget.