Overview

• Inheritance tax receipts reached a record £8.2 billion in the 2024–25 tax year, £750 million higher than the previous year.
• The average UK house price in February 2025 stood at £268,319, nearly double the value recorded in 2005, with projections indicating it will exceed £325,000 by 2035.
• The £325,000 inheritance tax threshold, frozen since 2021, will remain unchanged until 2030, eroding its real value as inflation and asset prices rise.
• The Budget Responsibility forecasts that 9.7% of estates will face inheritance tax by 2030, compared to 4% today.
• HMRC investigations into underpaid inheritance tax rose by 31% in 2024–25, prompting families to increasingly adopt lifetime gifting strategies to reduce future liabilities.