Inheritance tax is being paid by more estates than a decade ago, and HMRC now collects record sums from it, but government statistics do not publish a single headline figure for how much inheritance tax goes underpaid each year. This piece sets out what the official data does show.
The clearest published numbers cover receipts, the number of estates that pay, and the average effective rate. HMRC also runs compliance checks on estate accounts, and separate rules govern how far back it can look where tax has been underpaid. All figures below are drawn from named HMRC and ONS statistics and are current as at July 2026, subject to change.
Key figures at a glance
Fewer than 1 in 20 estates pay inheritance tax, yet the amounts collected are rising sharply. In the 2022 to 2023 tax year, 31,500 estates faced a charge, 4.62% of all UK deaths, and paid an average effective rate of 13% despite the 40% headline rate (HMRC Inheritance Tax liabilities statistics, tax year 2022 to 2023, published July 2025, subject to change).
| Measure | Figure | Source (period) |
|---|---|---|
| IHT received by HMRC | £8.5 billion | HMRC tax receipts bulletin (2025–26) |
| Taxpaying estates | 31,500 | HMRC IHT liabilities stats (2022–23) |
| Share of UK deaths with an IHT charge | 4.62% | HMRC IHT liabilities stats (2022–23) |
| IHT liabilities created | £6.70 billion | HMRC IHT liabilities stats (2022–23) |
| Average liability per taxpaying estate | £212,000 | HMRC IHT liabilities stats (2022–23) |
| Average effective tax rate | 13% | HMRC IHT liabilities stats (2022–23) |
| Nil-rate band (frozen) | £325,000 | gov.uk/inheritance-tax (as at July 2026) |
All figures as at July 2026 and subject to change. Comparisons across years should be treated with caution because reporting rules for non-taxpaying excepted estates changed from 1 January 2022 (HMRC IHT liabilities statistics, published July 2025).
Inheritance tax receipts have climbed to record levels
HMRC received £8.5 billion in inheritance tax in the 2025 to 2026 financial year, compared with £3.5 billion in 2006 to 2007 (HMRC tax receipts annual bulletin, updated June 2026, subject to change). HMRC links the continued growth to rising asset values and to the tax-free thresholds being held at their 2020 to 2021 levels.
The number of taxpaying estates and the tax created are rising alongside receipts. The table below shows the two most recent tax years for which HMRC has published estate-level data.
| Measure | 2021 to 2022 | 2022 to 2023 |
|---|---|---|
| Taxpaying estates | 27,800 | 31,500 |
| Share of UK deaths | 4.39% | 4.62% |
| IHT liabilities created | £5.99 billion | £6.70 billion |
Source: HMRC Inheritance Tax liabilities statistics commentary, published July 2025. Liabilities created rose by £0.71 billion (12%) between the two years. Figures subject to change.
How many estates pay, and at what rate
In 2022 to 2023, 31,500 estates had an inheritance tax charge, which HMRC describes as fewer than 1 in 20 deaths (HMRC IHT liabilities statistics, 2022 to 2023, published July 2025, subject to change). The average liability was £212,000 per taxpaying estate, and the average effective rate was 13%, well below the 40% headline rate because of reliefs, exemptions and the tax-free bands.
The gap between the 40% headline rate and the 13% average effective rate reflects how the tax is structured. Each person has a nil-rate band of £325,000, with a residence nil-rate band of up to £175,000 where a home passes to direct descendants, and transfers between spouses or civil partners are generally exempt (gov.uk/inheritance-tax, as at July 2026, subject to change). These bands are frozen until the end of the 2030-31 tax year (5 April 2031) (gov.uk, subject to change).
How HMRC checks estates for underpaid inheritance tax
HMRC does not publish a single figure for inheritance tax underpaid each year, but it does run compliance checks on estate accounts and can reopen cases where tax has been understated. Its inheritance tax manual sets out how officers investigate valuations, lifetime gifts and claimed reliefs before an account is cleared (HMRC Inheritance Tax Manual, IHTM16025, as at July 2026).
The time limits are wide where tax has been underpaid. Where no inheritance tax account has been delivered, HMRC generally has 20 years from the relevant date to recover the tax, and where a loss of tax is brought about deliberately there is no time limit at all (HMRC Compliance Handbook, CH50100, as at July 2026, subject to change). Common areas of dispute include property valuations, undeclared lifetime gifts, and claims for business or agricultural relief.
The published data measures what is paid. What is underpaid is harder to see, which is why HMRC keeps long windows to look back at estate accounts.
What the numbers mean
Rising receipts and a rising share of estates point in one direction: with the nil-rate band held at £325,000 and asset prices higher, more families are being drawn into inheritance tax over time (HMRC tax receipts annual bulletin, updated June 2026, subject to change). In our view, that combination tends to increase both the number of estates that must file and the scope for honest mistakes.
On underpayment specifically, the honest position is that the official statistics do not isolate it. The 13% average effective rate for 2022 to 2023 (HMRC IHT liabilities statistics, subject to change) shows how far reliefs and bands reduce bills for those who do pay, but it says nothing about estates that under-declare. Because valuations and gift histories can be complex, many people choose to discuss an estate account with a qualified professional before it is submitted, rather than risk a later enquiry. This is general information, not a recommendation for any particular estate.
Sources and methodology
Every figure on this page comes from a named official statistics source and was checked against the live publication in July 2026. Where a source does not publish a figure, such as a single total for underpaid inheritance tax, we have said so rather than estimate it.
- HMRC tax receipts and National Insurance contributions for the UK (annual bulletin): IHT receipts, 2006 to 2007 and 2025 to 2026, updated June 2026.
- HMRC Inheritance Tax liabilities statistics: commentary: estates, share of deaths, liabilities, average liability and effective rate, tax years 2021 to 2022 and 2022 to 2023, published July 2025.
- HMRC Inheritance Tax Manual (IHTM16025): investigation procedure, as at July 2026.
- HMRC Compliance Handbook (CH50100): assessing time limits, as at July 2026.
- gov.uk/inheritance-tax: rates, nil-rate bands and exemptions, as at July 2026.
For background on how the tax works and where planning can fit, see our estate planning guide, our overview of Inheritance Tax Explained, and the specific issues covered in IHT from residential property.
Frequently asked questions
How much inheritance tax is underpaid in the UK each year?
HMRC does not publish a single official figure for inheritance tax underpaid each year, so any precise number should be treated with caution. What is published is that HMRC received £8.5 billion in inheritance tax in 2025 to 2026 (HMRC tax receipts bulletin, updated June 2026, subject to change), and that it runs compliance checks on estate accounts.
How many estates actually pay inheritance tax?
In the 2022 to 2023 tax year, 31,500 estates faced an inheritance tax charge, which was 4.62% of all UK deaths, or fewer than 1 in 20 (HMRC Inheritance Tax liabilities statistics, published July 2025, subject to change). That was up from 27,800 estates, or 4.39% of deaths, in 2021 to 2022. The figures can change as reporting rules and asset values shift.
Why is the effective inheritance tax rate only 13%?
The 40% rate applies only to the part of an estate above the available tax-free thresholds. Reliefs, exemptions and the nil-rate bands reduce the amount that is actually taxed, so taxpaying estates paid an average effective rate of 13% in 2022 to 2023 (HMRC IHT liabilities statistics, subject to change). The exact rate for any estate depends on its assets and circumstances.
How far back can HMRC go for underpaid inheritance tax?
Where no inheritance tax account has been delivered, HMRC generally has up to 20 years from the relevant date to recover the tax, and where a loss of tax is brought about deliberately there is no time limit (HMRC Compliance Handbook, CH50100, as at July 2026, subject to change). These rules are complex, and it can be worth discussing an estate with a qualified professional before filing.
Why are inheritance tax receipts rising?
HMRC attributes the continued growth in receipts to rising asset values and to the tax-free thresholds being held at their 2020 to 2021 levels (HMRC tax receipts annual bulletin, updated June 2026, subject to change). The nil-rate band remains £325,000 and is frozen until the end of the 2030-31 tax year (5 April 2031) (gov.uk/inheritance-tax, subject to change).
Do these figures apply across the whole UK?
Inheritance tax is a UK-wide tax, so the receipts and estate statistics cover the whole UK. However, the surrounding law that affects how estates are administered differs: Scotland has its own succession rules and uses confirmation rather than probate, and Northern Ireland has a separate system. Where an estate touches more than one jurisdiction, many people choose to take advice in each.