Death tax a 'meal ticket for the nation' as HMRC grabs £2.2bn in 3 months

THE country's “most hated of taxes” is increasingly a “meal ticket” for the nation’s coffers, financial experts have warned.

- By Steph Spyro

Inheritance tax (IHT) made £2.2 billion for the Government in the first three months of this tax year, data released yesterday by HM Revenue and Customs shows.

This is £100 million higher than the same period in 2024/25 and continues an upward trend that began two decades ago.

It means IHT revenues for this year so far are 4.8% ahead of last year, which set a record.

Nicholas Hyett, investment manager at 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 on the increase as an ever greater number of estates become liable.”

The allowance has been frozen at £325,000 for 16 years and will remain unchanged for another five years despite house prices rising.

The £175,000 residence nil rate band has been the same since 2020.