Inheritance tax receipts dipped to a three-year low in August in what Revenue and Customs attributed to a ‘timing effect.’
The dip follows new record high receipts in June and July.
Despite the August dip in receipts, the general direction of travel points towards higher receipts.
Receipts continued to rise for the five months from April 2026 to August 2026 to £3.8bn, £0.1bn higher than the same period last year.
Chart: Monthly IHT receipts
Source: HMRC data, 22 September 2026
In its latest receipts bulletin HMRC noted that higher receipts in the coming years are expected to be due to a combination of higher volumes of wealth transfers following recent liable deaths, recent rises in asset values, and the government’s decisions at various recent fiscal events to maintain the tax free thresholds at their 2020 to 2021 levels up to and including 2030 to 2031.
Just over a month before the Chancellor delivers his first Budget, the latest public sector finances data show borrowing in August reached £18.3bn, £2.9 billion (19%) higher than the same month last year.
Nick Henshaw, head of intermediaries distribution at mutual society Wesleyan, said the inclusion of unused pensions within the IHT net from April is likely to see a considerable rise in receipts.
He said: “A further rise in inheritance tax receipts reinforces the longer-term direction of travel. Frozen thresholds, significant wealth tied up in property and forthcoming changes to pensions all mean that inheritance tax is now a reality for many who have never had to consider it before.
“We’re now just six months away from unused pension funds being brought within the inheritance tax net. With further guidance still to come, and speculation building around potential changes to IHT at the Autumn Budget, advisers will be helping clients navigate a significant amount of uncertainty.
“It’s important that clients don’t make knee-jerk decisions in response to any announcements. Cashing in pensions, for example, can create other tax consequences. The six-month milestone should instead be a prompt to review pension arrangements and estate plans, ensuring any decisions are considered as part of a client’s wider financial circumstances.”