Latest HMRC figures out today show a rapid rise in IHT receipts in recent years.

Julia Rosenbloom, tax partner at Evelyn Partners, warned that families face “a bleak reality” on IHT as more are pushed into its scope.

She said: “Families face the bleak reality that even if the IHT regime remains unchanged in the months ahead, more people will be pushed into its scope. 

“Frozen allowances in the form of the nil rate band and residence nil rate band - both locked into place until at least April 2026 – and historical rises in house prices are pushing IHT receipts upwards, as today’s update from HMRC illustrates.

Shaun Moore, tax and Financial Planning expert at Quilter, said: “The latest data shows that the tax take from Inheritance Tax marches ever higher as house prices continue to grow. IHT is steadily becoming rather lucrative for the Treasury.

“IHT was once viewed as a tax on wealthier individuals but the reality is that more people are now getting caught in the IHT net – partly as a result of soaring property prices. More and more people, including many families that might not consider themselves to be wealthy, could now face a hefty IHT bill due to amount their properties have increased in value.”

Alex Davies, CEO and founder of Wealth Club, said: “The government’s inheritance tax take seems to be increasing relentlessly, largely thanks to the steady increase in house prices in recent years pushing more families into the IHT danger zone.

“With all that’s going on in Downing Street, we can’t see any chance that this money-spinner will be reduced or abolished any time soon.

“The OBR has already predicted that next year IHT will bring in £6.7bn and while only 1 in 25 estates currently pay this tax, for those that are picking up the tab, we think the average bill could reach £266,000 for the current tax year.”

Retirement specialist Just Group pointed out that the latest HMRC figures show Inheritance Tax brought in £557 million into the Treasury in September alone, taking the overall tax-take to £3.5 billion in the first half of the 2022/2023 tax year – a new record that surpasses the previous high of £3.1 billion recorded in H1 2021/22, and the £2.9 billion in H2 2021/22.

Stephen Lowe, group communications director at Just Group, said rising IHT receipts were a reminder that people should regularly assess the full value of their estate and get professional advice.

Options such as ‘living inheritances’ could also help reduce the value of estates for IHT purposes, he said.

He said: “We are seeing these ‘living inheritances’ become increasingly popular and according to the latest Just Group Care Report over a third (35%) of parents aged 45+ with adult children had gifted at least £5,000.”