Landlords face growing tax pressure as HMRC revealed it collected £800 million in inheritance tax (IHT) in April alone—a £97 million jump on the same month last year. Quietly released figures point to a wider trend: property-based wealth is firmly in the government’s crosshairs.

Why It Matters:

• More estates than ever are being taxed: Nearly 1 in 10 are expected to pay IHT by 2030.

• Rising house prices mean even modest property portfolios now tip families over the IHT threshold.

• Once-protected investments (like AIM shares, pensions, and private company assets) are being reviewed for potential IHT charges.

❝ Over the last 20 years the inheritance tax tab has increased from £3.3 billion to £8.2 billion… this is only going one way – and that is up. ❞
— Nicholas Hyett, Investment Manager, Wealth Club

What’s Fueling the Fire:

A leaked government memo this week, from Deputy Prime Minister Angela Rayner to Chancellor Rachel Reeves, reportedly called for the complete removal of IHT relief on AIM shares—suggesting more aggressive tax policy could be on the way.

❝ That memo shows every part of estate planning is potentially on the table… ❞
— Ian Dyall, Evelyn Partners

With the Autumn Budget approaching, tax strategy is clearly being shaped by fiscal pressures—and landlords and property investors may find themselves caught in the political crossfire.

The Impact on Landlords:

Many landlords are reassessing plans to pass down property portfolios.

🗨️ “They were modest homes when I bought them—now they’re treated like luxury assets.”
— Paul Redford, Oxfordshire landlord

🗨️ “This is about working people who saved and invested. Not oligarchs or offshore trusts.”
— Joanne Fields, portfolio manager

Key concerns:

• Inheritance tax thresholds have been frozen for over a decade.

• Property values have risen sharply, pulling more estates above the threshold.

• Tax reliefs once seen as safe are now under review.

What Should Letting Agents and Landlords Do?

✅ Review your clients’ portfolios now—especially those nearing or above the £325,000 threshold (£650,000 for couples).
✅ Encourage landlords to seek estate planning advice before new rules are introduced.
✅ Stay alert for changes in the Autumn Budget, expected to set the direction of travel for IHT.