Charity donations cut £1.28bn from IHT bills

Families saved £1.28bn in inheritance tax through charitable donations in the 2025/26 tax year, an 88% increase on the £680m recorded in 2020/21, according to HMRC data. Sarah Coles from AJ Bell said people "will be considering how to protect their estate from this much-hated tax," while Ian Dyall from Evelyn Partners highlighted a surge in interest in making gifts, particularly from defined contribution pension funds, which are not subject to IHT.