Inheritance Tax Receipts Set a New Record in April 2025
Quick Take‑away
- £0.8 billion collected in April 2025 – that’s £97 million more than the same month last year.
- The trend has been going up for 20 years – from £3.3 billion to a solid £8.2 billion.
- Govt insiders still consider IHT a steady “cash cow.”
- Recent policy shifts threaten the sweet spot for small businesses’ AIM market.
Data from HMRC
This morning, HM Revenue & Customs (HMRC) revealed the figures: £0.8 billion in April alone.
That beats the previous year by a hefty £97 million and keeps the upward trajectory alive.
Investors already feel the buzz – forecasts suggest that IHT receipts will hammer the £8.2 billion mark for the 2024/25 tax year.
What the Numbers Mean
The Office for Budget Responsibility (OBR) is getting bullish: by 2030, around 10 % of estates might shoulder death duties.
Reasons? House prices keep climbing, the rules for inheritance tax are tightening, and the annual allowance has been frozen for years.
According to Nicholas Hyett, Investment Manager at Wealth Club, the tax tab has jumped from £3.3 billion to £8.2 billion in two decades.
So the only direction this tax law can go… is UP.
Why the Government Still Loves It
Leaked cabinet documents have everyone saying – inheritance tax is a “cash cow.”
But the real chatter is about the uncertainty created when the government raids “IHT‑free” assets: pensions, private company shares, and especially AIM shares.
AIM (Alternative Investment Market) was designed to help smaller UK firms raise money – no inheritance tax was due on those shares, making them an attractive risk‑tolerant investment.
Now it’s been cut by 50 % and there are whispers that the relief might be taken away altogether.
What This Means for Small Businesses
When you change the tax game for AIM, you’re basically saying – “Investing in your small company is now riskier.”
The FTSE AIM All Share has dropped over 8 % in five years, and without clear rules, companies could “dry up” and struggle to secure funding.
A government that touts growth is now threatening its own growth‑stock market – not exactly a recipe for innovation.
Bottom Line
Inheritance tax is riding a steady climb, but the newly introduced uncertainty about AIM and other “tax‑free” assets could send small firms into the red.
Keep your wallets tight – you never know when the next “cash cow” decision might shift how you invest in tomorrow’s start‑ups.
