Inheritance tax receipts reached another record high last year – rising by about another half a billion pounds – research has found.

According to analysis of HMRC figures, by Wilsons, a private client law firm, Inheritance Tax receipts reached £4.7bn in 2015/16.

This compared to £4.2bn in 2014/15 and £4.7bn in 2013/14.

Wilsons suggested that higher house prices coupled with the freeze on the inheritance tax free threshold meant that more estates have been coming within the scope of IHT.

The firm said that parents and grandparents wishing to leave their wealth to their children and grandchildren in order to help with weddings or having children could be in for a surprise and a substantial IHT bill - if not passed on in a tax efficient way.

The company said the need to efficiently pass wealth between generations is growing – with an estimated combined housing wealth of £1.3 trillion for the over 65s.

It suggested not enough people have been making use of their annual allowance – including an annual exemption which allows individuals to give gifts totalling £3,000 a year, IHT free.

The firm has been recommending to clients, among other measures, that a deed of variation can also be an important tool in avoiding unnecessary IHT.

Jessica Broxup, Solicitor at Wilsons adds: “Grandparents want to know that the money they leave to their children and grandchildren won’t be eaten up by tax unnecessarily.

“Whether you decide to gift a portion of your assets during retirement to your children or grandchildren or use your pension as a vehicle to pass down wealth – there are many options available.”

“It’s natural for grandparents and parents to want to ensure their offspring are secure in the future - but for this to be effective its best to start planning early.”