Inheritance tax receipts reached a record £936 million in September 2026, as frozen tax thresholds and rising asset values continued to bring more estates within the scope of the levy. The latest figures come just a week before the Autumn Budget, with further changes to inheritance tax rules already scheduled for April 2027.
The increase reflects growing pressure on households whose property, investments and savings have risen in value while tax allowances remain unchanged. Financial advisers warn that forthcoming pension reforms could expose more families to inheritance tax, even as government receipts continue to rise.
Inheritance Tax Receipts Rise As Frozen Thresholds Affect More Estates
According to HM Revenue & Customs figures reported by multiple outlets, inheritance tax receipts reached £936 million in September, compared with £671 million in the same month last year. The £265 million increase also surpassed the previous monthly record of £871 million, recorded in June 2026.
Receipts for the first six months of the 2026/27 financial year totalled £4.72 billion, up approximately 7% from £4.39 billion during the equivalent period last year. The figures follow five consecutive years of record inheritance tax collections, with annual receipts reaching £8.5 billion in 2025/26.
The Office for Budget Responsibility forecast in March that inheritance tax would generate £9.5 billion during the current financial year. Collections would need to accelerate during the second half of the year to meet that estimate.
One factor behind the increase is the prolonged freeze on inheritance tax allowances. The standard nil-rate band has remained at £325,000 since 2009, despite changes in property prices and other asset values.
According to City AM, average house prices recently reached £380,000 in the South East and £554,000 in London, illustrating how property wealth can contribute to inheritance tax exposure. Ian Dyall, head of estate planning at Evelyn Partners, said frozen allowances were bringing more families within the tax system. He also noted that estates already liable for inheritance tax were seeing larger proportions of their wealth exposed to the charge.
Pension Reforms Could Bring Thousands More Estates Into Inheritance Tax
The inheritance tax landscape is also changing ahead of April 2027, when most unused pension funds and certain death benefits are scheduled to fall within the scope of the tax. According to The Intermediary, Simon Martin, head of UK technical services at Utmost, said the combination of frozen thresholds, rising asset values and reforms to Business Property Relief was continuing to widen inheritance tax exposure.
The pension changes are expected to bring another 10,500 estates into the inheritance tax system during the relevant year, while increasing the tax paid by 38,500 estates. The average additional liability is estimated at £34,000.
Samantha Warner, legal director at Winckworth Sherwood, warned that neither the standard nil-rate band nor the residence nil-rate band had been adjusted to reflect inflation or rising property values.
Financial advisers are consequently encouraging households to review their estate arrangements, including wills, gifting allowances and pension death benefit nominations. Tim Stovold, head of tax at Moore Kingston Smith, suggested that receipts could ease if weaker stock market and property values affect future collections.
