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HMRC has revealed that it has collected £5.2bn in inheritance tax (IHT) receipts between April 2025 and October 2025, which is £0.2bn higher than the same period last year.
Meanwhile, income tax, capital gains tax and NICs receipts for April 2025 to October 2025 were £291.5bn, which is £30.1bn higher than the same period last year.
PAYE income tax and NICs receipts for April 2025 to October 2025 were £272.6bn, which is £28.1bn higher than the same period last year.
Furthermore, total VAT receipts for April 2025 to October 2025 are £107.1bn, which is £5.2bn higher than the same period last year.
Nicholas Hyett, Investment Manager at Wealth Club, said: “IHT’s main nil-rate threshold has been frozen at £325,000 since 2009 (had it increased in line with inflation it would now be nearly £525,000). That can squeeze an extra £80,000 from an estate without the government having to “raise” taxes at all. The Chancellor is set to repeat the trick with various other tax allowances – including freezing income tax thresholds into next decade.
“Targeted IHT reliefs have come under attack in recent years – including business relief, agricultural relief and the alternative investment market. All of these changes are sold as closing loopholes and targeting the wealthy without affecting “working people”, never mind that they have been damaging for small businesses, family farms and UK capital markets.”
He added: “We expect the Chancellor to make a song and dance about targeting “special interests” again in the budget through salary sacrifice and some form of “mansion tax” – though in practice tinkering around the edges like this has profound knock-on effects, not least on activity in the housing market.
“There may be a final grab for more IHT revenues this time round, through attacks on gifting rules. The current seven year rule, after which gifts are free from IHT, could be extended or there could be a move to cap gifts out of surplus income (which are currently free from inheritance tax straight away).”
