HMRC has recovered an extra £1.36billion over the past five years by investigating estates suspected of underpaying inheritance tax, according to figures obtained by NFU Mutual via a Freedom of Information request. The disclosure comes amid growing anxiety about a potential new "death tax", after speculation that new Prime Minister Andy Burnham could pursue a 10 per cent levy on all estates to help fund social care, on top of a record £8.5billion collected in standard inheritance tax last year.

Investigations recovered £247million in 2024-25 alone, down 13 per cent on the previous year, though experts caution this reflects the lengthy nature of such probes rather than reduced HMRC scrutiny. Individuals become liable for inheritance tax above £325,000 (or £650,000 for married couples), rising to £500,000 and £1million respectively when a home is left to direct descendants; HMRC examines bank statements, insurance records and gifting history to uncover undisclosed assets. The tax net is also set to widen from April 2027, when pensions become subject to inheritance tax for the first time.