Grandmother showing a photo album to granddaughters. (Image: Getty)
inheritance tax receipts hit £6.3billion in the nine months from April to December 2024, official figures have revealed.
HM Revenue and Customs () said this is £600million higher than the same nine months last year.
Nicholas Hyett, Investment Manager at Wealth Club, said: “Inheritance tax continues to be something of a golden goose for – with a tax take that seems to rise inexorably.
“It may only affect a small number of estates at present, but that number is growing all the time – suggesting “Britain’s most hated tax” is only set to become more unpopular.
“What really gets to many people about inheritance tax is the double taxation. You’re taxed on the money when you earn it and again when you die, resulting in combined income tax and inheritance tax rate of 67% for additional rate tax payers – potentially more if you’re also paying National Insurance.”
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There were a number of changes to inheritance tax (IHT) at Rachel Reeves’s first budget in October.
This included an extension to the freeze on IHT thresholds, which have been frozen for a further two years until 2030.
Agricultural Relief and Business Property Relief have been reformed, meaning that from April 2026, the first £1million of qualifying combined assets will have no inheritance tax at all, but for assets overt £1million a 50% relief will apply, at an effective rate of 20%.
And from April 2027, inherited pensions could be subject to inheritance tax.
Sir Keir Starmer’s government is ramping up efforts to spur growth. (Image: Getty)
The series of changes to inheritance tax rules will raise £2 billion a year, Chancellor Rachel Reeves said.
By 2029–30, the share of deaths liable for IHT is forecast to rise to reach its highest level in over 50 years.
Around 4% of deaths result in an IHT charge.