Inheritance tax receipts reached £6.6 billion in the nine months to December 2025, according to new figures. This represents an increase of £0.2 billion compared with the same period last year.
The data reveal a sharp rise in self-assessment tax payments during December. Collections jumped to £3.1 billion, up 25% year-on-year.
The impact of higher asset prices, including properties and stocks, means more people are being dragged into paying IHT with the threshold frozen.
Although receipts are rising, there are numerous ways to protect estates against IHT, with how much a person pays to HMRC on their death very much in their own hands.
‘Gifts of any value pass out of your estate after seven years – this can make it a good idea to give away assets while you are still alive rather than leaving them in a Will,’ explained Helen Morrissey, head of retirement analysis, Hargreaves Lansdown.
‘There is also an array of different allowances that enable you to gift assets away immediately. These include the £3,000 annual allowance as well as smaller allowances of £250 for smaller gifts. There are also rules around gifting to loved ones on marriage with gifts to children of £5,000, grandchildren and great grandchildren of £2,500 and £1,000 to anyone else. Such gifts leave your estate for inheritance tax purposes immediately.”
Schemes such as SEIS and EIS can help adventurous investors protect their investments from the tax man.
Meanwhile, capital gains tax receipts fell to £231 million in December, ahead of the usual seasonal peak in January. The drop suggests investors may be holding onto gains rather than realising them.
This behaviour appears linked to recent policy changes. The annual CGT allowance has been reduced, whilst rates on stock and share gains have increased. Both measures seem to be prompting investors to defer disposals.