The latest HMRC figures, in plain terms
According to HMRC's Inheritance Tax receipts data, published 23 April 2026, UK inheritance tax receipts reached a record £8.5 billion for the 2025/26 tax year — up from £8.3 billion the previous year, and the fifth consecutive annual record.
This is not happening because more families have suddenly become wealthy. The nil-rate band, the amount you can leave before inheritance tax applies, has been frozen at £325,000 since 2009. As house prices and other assets have continued to rise around that fixed figure, more and more estates that would never have previously been considered "wealthy" are now being pulled into the inheritance tax net — a process commonly referred to as fiscal drag.
From April 2027, most unused pension funds and death benefits will be brought within the scope of inheritance tax for the first time, following measures confirmed at the Autumn Budget 2024 and maintained at the Autumn Budget 2025. For many people, pensions have historically sat outside the estate for inheritance tax purposes — this change means the order in which you draw down pensions, savings, and other assets in retirement may need to be reconsidered well in advance.
Why this affects more families than you'd think
Estate planning is often assumed to be something only "wealthy" people need to think about. The frozen nil-rate band has changed that assumption considerably. A family home in many parts of Suffolk, combined with modest savings and a pension, can now bring an estate within reach of inheritance tax without anyone in the family ever feeling particularly wealthy.
Equally, estate planning is not only for people who are older or in poor health. None of us can predict how long we will live, and a plan put in place early — while you have the most options available to you — is almost always more effective, and less stressful for your family, than one assembled in a hurry.
How we can help
- Reviewing your current exposure — working out, in plain terms, whether your estate is likely to be liable for inheritance tax under current and forthcoming rules.
- Using available reliefs and exemptions — including gifting allowances, the residence nil-rate band, and trusts, where appropriate to your circumstances.
- Planning around the 2027 pension changes — reviewing how pensions, savings, and other assets should be drawn down to minimise the impact of pensions being brought into the inheritance tax calculation.
- Coordinating with solicitors and accountants — particularly where business assets, foreign property, or more complex family circumstances are involved.
- Keeping your plan current — inheritance tax rules change frequently, most recently at the Autumn Budget 2025, so a plan made even a few years ago may need revisiting.
Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.
The Financial Conduct Authority does not regulate estate and Inheritance Tax Planning.
Tax concessions are not guaranteed and may change in the future. Tax free means the investor pays no tax.