UK Inheritance Tax Receipts Hit Record High as Frozen Thresholds Bite

Inheritance tax (IHT) receipts in the UK soared to a record high of £2.3 billion in the three months to June 2026, a £96 million increase year-on-year, according to HMRC data. June alone saw £871 million in receipts, up from £730 million in May. The surge is attributed to former Chancellor Rachel Reeves' decision to extend the freeze on income tax thresholds until 2031, a policy critics call a 'tax rise by stealth' that pulls more middle-class families into the IHT net. Rising asset prices and the inclusion of unused pension pots from April 2027 are expected to further increase bills. Industry experts warn that Prime Minister Burnham, who has previously advocated for wealth tax reform, could alienate top earners by raising the top income tax rate to 50% or altering thresholds. The trend is making the UK less competitive for entrepreneurs and wealthy individuals, according to analysts.