IHT receipt rises 'not enough to fill government's black hole'

The tax is seen as a likely reform target in October’s Autumn Budget

Jen Frost
clock • 3 min read

Inheritance tax (IHT) take has climbed again, but industry watchers have cautioned that this is not enough to fill a public finance “black hole” identified by Chancellor Rachel Reeves.

IHT receipts for August to April 2024 sat at £3.5bn, a £300,000 rise on the same period last year. This is according to figures released by HM Revenue and Customs (HMRC) this morning (20 September). Total tax receipts for the period were £342.2bn, an £8.9bn increase year-over-year. "Rising IHT receipts are a fact of life for the Treasury but even at the current rate of 9.4% on the year they aren't rising fast enough to help fill the ‘black hole' that the government says it has identified in the public finances," said Evelyn Partners tax partner Laura Hayward. DC pension pots and farmi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Inheritance tax exemption threshold for farmers increased to £2.5m

Inheritance tax exemption threshold for farmers increased to £2.5m

Change takes effect from 6 April 2026

Isabel Baxter
clock 23 December 2025 • 2 min read
IHT receipts continue on path to record year

IHT receipts continue on path to record year

£5.8bn for first eight months of 2025/26

Jen Frost
clock 19 December 2025 • 2 min read
To 2p or not 2p: Income tax rate changes explained

To 2p or not 2p: Income tax rate changes explained

'Income tax rate changes, but not the ones we were expecting'

Julia Peake
clock 18 December 2025 • 6 min read