Inheritance tax receipts reached £6.3bn from 5 April to 31 December 2024, marking an 11%increase on the £5.7bn received in the same period in 2023.

Receipts totalled £620m in December alone, an increase of 13%on the £547m collected in December 2023.

Currently, just 4% of UK estates are liable for inheritance tax, but government estimates highlight that this will rise to 10% by 2030.

Inheritance tax is applied at a flat rate of 40% on estates worth over £325,000, but the system includes many loopholes, meaning the effective rate is often much lower, City AM reports.

In last October’s Budget, Chancellor Rachel Reeves announced measures to close some of the existing loopholes. This would mean that inherited pension savings be subjected to inheritance tax from April 2027 and farms will have to pay the tax for the first time.

The Office for Budget Responsibility has estimated that policy changes announced at the Budget will add £2.5bn in inheritance tax receipts by 2029-30.