Inheritance Tax receipts for May were £1.4 billion, £37m lower than the same period last year although the long term trend remains upwards, experts say.
Wealth manager Quilter, which analysed the figures, said the number marked another month of lower receipts compared to last year's record total.
Despite the decline, Quilter believes the broad ‘direction of travel’ remains upwards.
Shaun Moore, tax and Financial Planning expert at Quilter, said: “While monthly figures can fluctuate, the broader direction remains clear, with more estates being drawn into scope as thresholds remain frozen and asset values persist.
“Following Andy Burnham’s just announced victory in the Makerfield by-election, the wider debate around wealth taxation is likely to move further into focus. Burnham has previously argued for scrapping Inheritance Tax in its current form and replacing it with a broader levy on wealth or estates, often linked to funding social care.
“However, he has also indicated that any near-term policy would remain within Labour’s existing manifesto commitments and fiscal framework. That suggests more radical reform remains a longer-term prospect, likely tied to a future general election rather than imminent change.”
Mr Moore added that frozen thresholds and the inclusion of pensions from 2027 point towards steadily rising tax liabilities.
Will Hale, CEO of Key Equity Release, said: “Despite a small dip in receipts from April 2026 to May 2026 compared to the same period last year, total IHT receipts remain on course to hit £14.5 billion by the 2030/31 tax year compared with £8.5 billion in the last tax year so never has quality advice been more important.
“With over £3.8 trillion of unencumbered housing equity sitting with the over-65s, property wealth must play a major role in all planning strategies."
Mark Jephcott, senior relationship manager at wealth solutions provider Utmost, said: “Inheritance Tax continues to generate historically high tax revenues for the Treasury as frozen thresholds and rising asset values bring more families within scope of the tax. The nil-rate band has remained unchanged at £325,000 since 2009 despite property prices increasing by more than 75% over the same period.
“The Autumn Budget 2025 maintained this freeze until 2031, and the scope of IHT continues to widen following reforms to business property relief that came into effect on 6 April 2026 and with unused pension pots due to be brought within the scope of inheritance tax from April 2027. As a result, the number of estates expected to be caught by IHT is forecast by the OBR to almost double by 2030.
"While these measures are increasing tax receipts, it is making the UK a less competitive destination for entrepreneurs, investors and internationally mobile wealthy individuals, who make an outsized contribution to the tax take.”
Nick Henshaw, head of intermediaries distribution at Wesleyan, said: “With less than a year to go until pensions are liable for inheritance tax, many advisers are doing what they can to support clients in planning ahead. But detailed guidance is still lacking from HMRC at this point, leaving a lot of guesswork – making giving clear advice a challenge.
“The inclusion of pensions will see swathes of people grappling with questions about inheritance tax, including those who have never needed to consider it before now.”
Andrew Zanelli, head of technical engagement at Aberdeen Adviser, said: “We’re hearing that advisers are already seeing heightened demand for estate planning support as individuals look to understand the implications and take proactive steps. In this environment, tailored advice that considers personal circumstances and long-term legacy goals is increasingly important.
"With the right planning in place, including the effective use of tools such as trusts, it is possible to manage IHT exposure while staying aligned to broader financial objectives. A clear view of total wealth, combined with structured professional guidance, will be key to navigating the evolving landscape.”
Sarah Coles, head of personal finance at AJ Bell, said: “The taxman carved himself a hefty slice of our cash in May, devouring £153.7 billion in one month alone thanks to a combination of frozen thresholds and a hike in dividend tax.
“This May we paid almost 10% more income tax than in May 2025. Income tax bills have been climbing ever since thresholds were frozen in 2021/22, and the impact of this horrible stealth tax becomes more evident with each passing year. Every pay rise has pushed millions of people into paying more tax, and more at higher rates. It’s why the May income tax take has risen by more than half (53%) for the month since 2021."