New figures from HMRC show that Inheritance Tax (IHT) continues to generate record revenue for the Treasury, highlighting the growing importance of estate planning for individuals and families.

IHT receipts reached £6.6bn in the first nine months of the 2025/26 tax year – an increase of £232m compared with the same period in 2024/25.

Why IHT receipts are rising

Several factors are bringing more estates within the scope of IHT:

• Frozen nil-rate bands until at least April 2028 mean that as asset values increase, more estates become liable.
• Rising property values continue to push estate values above IHT thresholds.
• Changes to agricultural and business property reliefs (APR/BPR) from 6 April 2026 will introduce a £2.5 million cap on the combined value of assets eligible for 100% relief, with 50% relief applying to amounts above this threshold. Read more on these changes here.
• Inclusion of unused pensions in estates from April 2027 will significantly alter the tax position for many families.

As asset values rise and pensions become part of estates – timely, informed advice has never been more valuable.

The importance of early and effective estate planning

IHT is often perceived as unavoidable, but with appropriate planning it can frequently be mitigated. Many of the most effective strategies take time to implement and may become less accessible as legislation changes.

Practical estate planning may include:

• Making full use of lifetime gifting allowances and exemptions
• Reviewing business and agricultural assets and succession plans
• Considering the use of trusts, particularly ahead of forthcoming changes
• Ensuring wills and other estate planning documents remain current
• Understanding how pensions will be treated on death
• Using spousal and civil partner exemptions effectively

For business owners, deadlines for tax-efficient asset transfers are approaching, making it essential to review succession and estate plans sooner rather than later.

How PM+M can help

Our team works with individuals, families, and business owners to navigate the increasingly complex IHT landscape. We provide tailored advice to help clients:

• Understand current and future IHT exposure
• Identify practical planning opportunities
• Implement strategies aligned with personal and family objectives
• Coordinate with legal and financial advisers where required

As IHT continues to affect a growing number of estates, proactive planning can make a meaningful difference to the value passed on to the next generation. Get in touch with our team by emailing enquiries@pmm.co.uk to discuss how we can support you with your estate planning needs.