Inheritance Tax (IHT) receipts rose £0.6bn (year on year) to £6.3bn for the period April to December 2024, according to the latest data from HMRC.

The total IHT receipts for the 2023/24 tax year were £7.4bn, with this expected to rise to £8.3bn for the 2024/45 tax year, according to data from the Office for Budget Responsibility.

IHT receipts are projected to hit £13.9bn by the 2029/30 tax year.

The continued increase in IHT receipts is not a surprise, with receipts following a strong upward trajectory over the past few years due to frozen nil-rate bands.

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.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said it was likely to be a record year for HMRC.

Shaun Moore, tax and Financial Planning expert at Quilter, agreed.

He said: “This relentless rise is no coincidence. With inheritance tax thresholds frozen until 2030, more families are being pulled into the scope of IHT, and this trend shows no signs of slowing.

“Farming families, too, could face tougher times as reductions to Agricultural Property Relief start to bite, potentially forcing some to make difficult decisions about the future of their farms. Meanwhile, tweaks to Business Relief and AIM share rules are also likely to keep boosting HMRC’s coffers in the years ahead.”

The Government’s consultation on including pensions within estates for IHT purposes from April 2027 will also likely drive further rises in IHT receipts.

Simon Martin, head of UK technical services at Utmost Wealth Solutions, said: “Additional reforms such as charging IHT on pension wealth at death and limits to agricultural and business reliefs will raise billions more pounds in tax receipts for the Government and increase the proportion of estates liable for the tax. However, there are steps to mitigate the impact of inheritance tax and so people should urgently assess the value of their estate to see if they are likely to be impacted.”

Today’s data from HMRC also showed a dramatic rise in Capital Gains Tax receipts. In the last three months of 2024, Britons paid £808m in CGT, a 60% rise year-on-year. Over the entire year, CGT receipts rose 13%, partially as a result of the higher rates introduced in the Budget.

Mr Moore said: “With the Annual Exempt Amount shrinking to just £3,000 and rates rising, the room for manoeuvre is tightening. For those with significant assets, timing has become everything. However, after this initial rush we may see a slow down as people sit on their assets reluctant to deal with the new rates.”