The government raked in a record amount of inheritance tax last year, the latest figures from HMRC show.
People paid a total of £8.2bn in inheritance tax between April 2024 and March 2025 – up from £7.4bn the year before.
Over the past 10 years, revenue has increased by £4.4bn.
Inheritance tax thresholds are frozen until 2030, which could mean an increasing number find themselves paying hefty bills.
“Property prices have grown rapidly in recent years, particularly in areas such as London and the South East, which in many cases will leave little to no room for additional assets to be left to loved ones before the tax is applied,” said Shaun Moore, tax and financial planning expert at wealth management firm Quilter.
“Inheritance tax has long since been a deeply unpopular tax, and its reputation is unlikely to improve any time soon.
“What was once viewed as a tax on only the wealthiest of families has spread to middle income families, many of which may not even realise they are affected.”
When looking at the total tax receipts for the year, HMRC collected more than £857bn – a 3.4% increase from the year before.
Income tax, capital gains tax and national insurance contributions accounted for 57% of that at £486.9bn.
That’s £17.6bn more than the same period last year.
“Frozen income tax thresholds, which have now remained stagnant since 2021, have seen an increasing number of people paying income tax for the first time, as well as dragging many into higher rates each year,” Moore added.
“Without an explicit tax hike, and therefore without technically breaking its promise not to increase taxes on working people, the government has generated billions in extra income.
“What’s more, with employer national insurance payments rising from this month, this tax take will continue to climb.”
