Inheritance tax receipts hit £4.39bn in the first six months of the 2025/26 tax year, according to data released today by HMRC.

That is £125m, or 3%, higher than the same period the previous tax year and continues an upward trend over the last two decades.

It keeps the figure on target to be another record-breaking IHT year, with the OBR’s most recent forecast predicting IHT will generate £9.1bn for the Treasury in 2025/26 and more than £14bn by 2029/30.

Last year’s record-breaking year of IHT receipts saw £8.2bn collected through the tax.

Chancellor Rachel Reeves plans to impose IHT on unused pensions from April 2027 which is likely to boost receipts further.

Stephen Lowe, director at retirement specialist Just Group, said: “Inheritance tax continues to prove a treasure trove for the Chancellor. Rising asset prices, frozen thresholds and a tightening of the exemption regime are all combining to drive ever-growing receipts.”

Ian Dyall, head of estate planning at wealth management firm Evelyn Partners, said: “The Treasury is on course for another record-breaking year of revenues from IHT. With the nil-rate band frozen at £325,000 since 2009 and the residence nil-rate band static at £175,000, fiscal drag is quietly pulling thousands more families into the IHT net as asset values increase year-by-year.”

He said the APR/BPR crackdown next April and the inclusion of pensions in estates from the following April will compound the effect, meaning households who would never consider themselves wealthy suddenly face significant tax exposure.

Rachael Griffin, tax and financial planning expert at Quilter, warned: “The direction of travel suggests the IHT burden could grow further."

She said there was speculation that the government is considering changes to the gifting rules, including the possible introduction of a lifetime cap on tax-free gifts, which would limit people’s ability to pass on wealth gradually over time.

She said: "Combined with the planned inclusion of pensions within IHT from 2027, these measures risk transforming what was once a niche tax affecting a small minority into one that captures an increasingly large share of the population.”

Looking ahead to the Budget on 26 November, Andrew Tully, technical services director at Nucleus, said there were many rumoured changes anticipated.

He said: “Changes could be made such as scrapping or updating the rules on agricultural land and business relief. Currently, a person can claim up to 100% relief on the inheritance of agricultural land if it is being actively farmed. This could be reduced, or certain limitations placed on the maximum value of the relief.”

He said changes could also be made to the IHT benefits of holding shares on AIM.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, pointed out that only relatively few estates actually pay inheritance tax.

She added: “However, with the recent announcement that pensions would be brought into the net from 2027 and swirling speculation around further tweaks in this upcoming event it’s an issue that is on more people’s minds. Current rumours say we could see a cap put on lifetime gifts for instance. There’s also potential for the various thresholds to be tinkered with and these could see more people dragged into the net.

“The likelihood is that we will see people look to get ahead of any changes and start making use of their allowances as they currently stand to gift money to loved ones while they can and potentially save them a tax bill.”