Inheritance tax (IHT) receipts reached £6.6 billion in the first nine months of the 2025/26 tax year, according to data released by HM Revenue & Customs (HMRC) this morning.

That figure is £200 million higher than the same period last year and continues a steady upward trend that has persisted for more than two decades.

The Office for Budget Responsibility forecast that IHT would raise £9.1 billion during the current tax year. Today's figures, combined with measures announced in the last Budget, suggest the government remains firmly on track to meet that target with three months still to go.

Nicholas Hyett, Investment Manager at Wealth Club, said:

"The government has made a pig's ear of inheritance tax reform. Crack downs on farmers and business owners have been unpopular, damaging, and ultimately unworkable.

The result was a 23rd December U-turn on the amount of inheritance tax relief that can be claimed through Agriculture Property Relief (APR) and Business Property Relief (BPR). That early Christmas present was a relief for farmers and small business owners, but don't let it distract you from the wider picture. The government is still making a massive inheritance tax grab.

Prior to the climb down on APR and BPR, the annual IHT take was expected to go from £8.3 billion annually at the start of this parliament, to £14.5 billion by 2030/31. Most of that extra money will still turn up in HMRC's coffers. It is being driven by frozen thresholds - which will see families who previously wouldn't have been considered wealthy enough to face IHT fall within the taxman's scope - but also changes to pension rules. Residual pensions used to be IHT free if you died before 75, not any more.

The combination of frozen thresholds and expanded scope mean the government's share of inheritances will continue to increase for the rest of this decade and beyond. That won't change until thresholds are unfrozen or the dogs' dinner of policy mistakes and subsequent U-turn succeeds in making us all poorer."

What can investors do to mitigate their inheritance tax bill?

Despite the changes, there remain legitimate ways to reduce the inheritance tax burden on your estate. Many strategies require long-term planning, careful structuring and a willingness to accept higher investment risk. With thresholds frozen until 2031 and most pension death benefits liable to IHT from 2027, proactive planning has never been more important.

Those concerned about inheritance tax could consider:

* Giving money away early: Gifts made from surplus income that do not affect the donor's standard of living are immediately exempt from IHT, as are certain smaller gifts. Larger gifts can also fall outside the estate if the donor survives for seven years. The key trade-off is loss of control - once money is gifted, it cannot be reclaimed.

* Investing in unlisted companies qualifying for Business Property Relief: Investments in qualifying unquoted businesses can become IHT exempt after two years. From 2026, investors will benefit from a £2.5 million Business Relief allowance, with any excess taxed at half the usual IHT rate (20%). While higher risk, this approach allows investors to retain ownership and potential returns.

* Using an AIM ISA: ISAs themselves are not exempt from inheritance tax, meaning up to 40% of their value could be lost on death. AIM ISAs, which invest in qualifying AIM listed companies, may qualify for Business Property Relief after two years, offering a tax efficient, though riskier - alternative for long-term investors.

Ends

For further information contact:

Jo Thorne: jo.thorne@wealthclub.co.uk

Wealth Club

Wealth Club was set up in 2016 by former Hargreaves Lansdown director Alex Davies. The aim was to make it easier for high net worth and sophisticated investors to find authoritative information on - and invest in - tax-efficient investments (VCTs, EIS, SEIS and AIM IHT ISAs).

Today, Wealth Club is the UK's largest non-advisory investment service exclusively for high net worth and sophisticated investors. Over 68,000 people are now members. More than 13,530 of these have become clients and have invested around £1.75 billion through us (December 2025).

Wealth Club is the UK's largest broker of tax-efficient investments. In 2023, Wealth Club launched its own Managed Portfolios to help wealthier and more experienced investors make more of their mainstream investments (ISA, SIPP and General Investment Account, or GIA).

In November 2024, the Wealth Club launched the UK's first investment fund supermarket for private markets funds for sophisticated and/or high net worth investors.