Inheritance tax has been described as a “meal ticket” for HM Revenue and Customs after receipts hit £7 billion in ten months. The amount was raised from April 2024 to January 2025, figures from HM Revenue and Customs (HMRC) showed.

This is £800 million higher than the same ten months last year and continues an upward trajectory over the last few years. HMRC raised £7.499 billion in the 2023-24 tax year, but these figures show that they are on track to smash through this figure for the following year. Nicholas Hyett, investment manager at investment service Wealth Club said: “Inheritance tax continues to be a meal ticket for HMRC. It may only affect a small percentage of estates, but that number is growing. OBR estimates suggest nearly 10% of estates will pay death duties by 2030 due to increasing house prices, changes to inheritance tax rules and years of allowance freezes.

“While we don’t expect to see any more changes to inheritance tax announced at next week’s Spring Statement, the changes announced in the autumn are yet to kick in and will increase the inheritance tax take substantially over the next few years.

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Around 4% of deaths result in an inheritance tax, often described as Britain’s most hated tax but this could rise to 10% by 2030.

Agricultural Relief and Business Property Relief have been reformed, meaning that from April 2026, the first £1million of qualifying combined assets will have no inheritance tax at all, but for assets over £1million a 50% relief will apply, at an effective rate of 20%.

And from April 2027, inherited pensions could be subjected to inheritance tax.

Andrew Zanelli, head of technical engagement at wealth management platform Aberdeen Adviser said: “Inheritance tax continues to bring in more money than ever. And the plan to bring pension pots into the fold, coupled with frozen thresholds, means more and more people could face a tax charge.

“From our discussions with advisers, we’re hearing some people are making hasty pension withdrawals or holding back on pension saving to try and avoid IHT issues down the line. Now, more than ever, it’s critical to keep the enduring power of pensions in mind as for most people, they’re going to remain the most efficient way to save for retirement compared to other tax wrappers.”