Inheritance tax (IHT) raised £736m for the Treasury in September, according to new figures released by HMRC today.

The figure pushes the half-year total haul for 2024/25 to £4.3bn, an increase of 10% or £396m compared to the same six-month period in the previous year. 

Ahead of the autumn Budget, IHT has been seen as a potential target for the Chancellor as the government looks for ways to boost its revenue.

Stephen Lowe, group communications director at retirement specialist Just Group, said: “With thresholds frozen and property prices still climbing, more estates are being drawn into the scope of IHT. Rumours abound that inheritance tax could be under review as the government looks for ways to boost revenue and fill its fiscal ‘black hole’.”

William Stevens, head of Financial Planning and partner at Killik & Co, said: “IHT remains a glistening pot at the end of the rainbow for a Chancellor looking to bring in cash.”

Andrew Tully, technical services director at platform Nucleus, 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 that changes could also be made to the IHT benefits of holding shares on the alternative investment market (AIM). AIM shares need to qualify for business property relief and be held for more than two years at the time of death to qualify for IHT exemption.

He added: “However, this may run contrary to the desire to increase investment in UK businesses, to drive further growth.”

Laura Hayward, tax partner at professional services and wealth management firm Evelyn Partners, said: “Any changes aimed at increasing the IHT take beyond this fiscal drag effect are likely to reap outsize results over the coming years as the baby boomer generation reaches average mortality.  

“So it’s no surprise IHT is at the centre of Budget speculation again, with firm reports claiming business and agricultural property reliefs will be reformed and the gifting rules revamped.

“It’s not out of the question that the Chancellor could also look at the nil-rate bands, as the residential NRB has come under criticism for discriminating against those who can’t or don’t want to leave their main property to a direct descendant. Could the RNRB be ditched with a less-than-equivalent increase to the main NRB?” 

The current £325,000 nil rate band has been at that level since 2009. The residential nil rate band was introduced on a phased basis between 2017 and 2020 and potentially gives an additional £175,000 nil rate band (making a total of £500,000) subject to certain rules.