Inflation is pushing more families into the Inheritance Tax net

There’s an old saying: the only certainties in life are death and taxes—and with inheritance tax (IHT), the two go hand in hand.

With public finances under pressure and the government seeking new sources of revenue, inheritance tax has become an increasingly significant contributor to the Treasury. In fact, IHT receipts for April to May 2025 reached £1.5 billion—£98 million more than the same period in 2024.

Despite a recent slowdown in house price growth, annual house price inflation dropped from 7.0% in March to 3.5% in April, according to the Office for National Statistics. At the same time, inflation stood at 3.4% in May. This combination is quietly pushing many families, who wouldn’t consider themselves wealthy, over the IHT threshold.

With the nil-rate band frozen at £325,000 until 2030, more estates are becoming liable for inheritance tax, often without the family realising. This has caught many off guard, especially in areas with high property values and rising living costs.

Economists warn that higher-than-average inflation may persist for the foreseeable future. Without proper planning, this means more estates will be subject to significant tax burdens, affecting families who are asset-rich but not necessarily cash-rich - many of whom have simply seen the value of their home grow dramatically over the past few decades.

At Dale & Newbery, we've seen this trend unfold time and again in Staines, Spelthorne, and the surrounding areas, where property values are among the highest in the country resulting in families paying large sums in inheritance tax- often unnecessarily.

Careful planning can help ensure your hard-earned wealth benefits your loved ones, not the taxman. This is particularly important for the younger generation, many of whom are already struggling to get a foothold on the property ladder.

Tax planning isn’t something to put off. At Dale & Newbery, we’ve been guiding families in and around Staines and Spelthorne for decades, helping them make informed decisions that bring peace of mind.

If inheritance tax has been on your radar but you’ve yet to take action, now is the time. Get in touch to arrange an appointment today. We’re happy to help.