Changes to the inheritance tax (IHT) regime announced since the October 2024 Budget, including bringing pension pots into the IHT scope and introducing changes to agricultural and business property reliefs, account for about 14% of total IHT revenue by the end of the 2030/31 financial year, the Office for Budget Responsibility (OBR) has set out.
The OBR's economic and fiscal outlook document, released after chancellor Rachel Reeves delivered the Spring Statement today (3 March), highlighted that frozen tax thresholds and rising wealth across generations are driving growth in IHT receipts. It set out that the changes to the IHT regime, including taxing inherited pension pots from April 2027 and introducing changes to agricultural and business property reliefs, account for about 14% of total revenue by the end of the forecast. "The behavioural responses to these measures and the tax base for inheritable pension wealth are parti...
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