Rachel Reeves is reportedly set to push ahead with a new tax raid despite receipts for a levy she is believed to want to tweak being set to reach a huge landmark total. Inheritance tax (IHT) receipts are on course to exceed £9 billion by the end of the current tax year, experts at Irwin Mitchell have predicted. Specialists add that HMRC figures point to hundreds more estates being taxed, and that the £10 billion milestone looks to be “within easy reach” for 2026/27.

The latest figures show that IHT tax receipts in July 2025 were the highest monthly figure recorded, according to the firm, which takes the tax generated from the charge this year to £3.1billion – a rise of 8% compared to the same period 12 months ago. Despite these hefty totals, it has been reported that the Treasury is looking to raise more money from IHT, as the Government seeks to fill an estimated £50billion hole in the public finances following U-turns.

Among the reported measures under consideration is a potential cap on lifetime gifts, part of a broader review into how assets can be transferred before death to minimise inheritance tax liabilities.

Under current UK rules, gifts made more than seven years before a person’s death are exempt from IHT.

Gifts made between three and seven years prior are taxed on a sliding scale, depending on their value and the total estate.

Andrea Jones, partner and head of Irwin Mitchell’s Private Client Advisory team, said: “Today’s figure of £844m for IHT receipts is the highest monthly amount recorded.

“It now looks likely that inheritance tax receipts will exceed £9 billion by the end of March 2026, and following the significant changes due to be introduced in 2026/27, I wouldn’t be surprised if the number is closer to £10billion 12 months later.”

Ms Reeves said earlier this month: “Any decision around taxation is a … decision for the Budget, and I’ll make those announcements.

“We haven’t even set the date yet for the Budget, but the key focus of the Budget is going to be to build on numbers that we’ve seen today to boost productivity and growth and prosperity all across the country.

“That is my number one priority as Chancellor, to get our economy firing off all cylinders so that working people in all parts of the country will feel the benefits of that economic growth.”

Pushed on whether taxes will have to increase in the autumn, Ms Reeves added: “We’ll wait for the official forecast from the Office of Budget Responsibility, and we’ll make those decisions in the round.”