UK HMRC inheritance tax enquiries rise to six‑year high as receipts dip

HM Revenue & Customs (HMRC) opened 4,940 formal inheritance tax (IHT) enquiries in the 2025/26 fiscal year, an 18% increase and the highest level in six years. Risk assessors referred 4,965 IHT returns to compliance, with only 40% of those checks leading to changes, underscoring a growing administrative burden for executors and advisers.

In the same period, total IHT receipts fell to £1.4 billion between April and May 2026, a £37 million drop year‑on‑year. Despite the short‑term decline, the government projects IHT revenues to rise to £14.5 billion by the 2030/31 tax year, driven by higher wealth transfers, asset value growth and the decision to freeze tax‑free thresholds at 2020/21 levels.