Inheritance tax receipts over time
Inheritance tax receipts have risen over the long run. HMRC reports that annual receipts grew from £3.5 billion in 2006 to 2007 to £8.5 billion in 2025 to 2026 (HMRC receipts bulletin, published 23 April 2026, subject to revision). Liabilities, measured separately, tell a similar story: total IHT liabilities created reached £6.70 billion in 2022 to 2023, a 12% (£710 million) rise on the year before (HMRC IHT liabilities statistics, 2022 to 2023, published 31 July 2025, subject to revision).
Receipts and liabilities are different measures on different timetables and are not directly comparable. Receipts bulletin published 23 April 2026; liabilities statistics for 2022 to 2023 published 31 July 2025. Figures subject to revision.
Why receipts and liabilities differ. Receipts count the tax actually paid to HMRC in a financial year, while liabilities count the tax charged on estates for a given death year, which HMRC publishes about two years in arrears (
HMRC background quality report, 2022 to 2023). The two series move in broadly the same direction but rarely match in any single year, which is one reason single-year comparisons between them can mislead.
Where disputes with HMRC tend to arise
Most inheritance tax disputes concern valuation and reliefs rather than the headline rate. The published statistics do not break out a count of valuation disputes, so this section describes the pattern qualitatively. Common flashpoints include the open-market value of land and property, the value of unlisted company shares, and whether business relief or agricultural relief applies to a particular asset. Because the tax is charged at 40% above the thresholds, a modest change in an agreed valuation can change the bill materially (gov.uk, Inheritance Tax, as at July 2026, subject to change).
Where a valuation cannot be agreed, an estate can ask HMRC for a statutory review, consider Alternative Dispute Resolution, or appeal to the First-tier Tribunal Tax Chamber (gov.uk, appeal to the tax tribunal, as at July 2026). Many disagreements are settled by correspondence long before that stage, so tribunal figures capture only the disputes that remain unresolved.
Inheritance tax is a high-value tax paid by few. That combination is why a single valuation can be worth arguing about, and why the numbers reward careful record-keeping.
Appeals and the Tax Chamber
Tax appeals in England and Wales, including inheritance tax, are heard by the First-tier Tribunal Tax Chamber, which sits within the wider tribunals system. Its caseload can be volatile from quarter to quarter. In October to December 2025, disposals in the Tax Chamber rose by 197% compared with the same quarter a year earlier, which the Ministry of Justice attributes largely to the determination of lead cases and the many linked appeals that sat behind them (MoJ Tribunal Statistics Quarterly, October to December 2025, published 15 May 2026).
That volatility is worth reading with care. A large percentage swing can reflect one cluster of grouped cases clearing at once, rather than a broad change in how often estates dispute their inheritance tax. The published tax-chamber figures cover all tax types together and are not broken down to inheritance tax alone, so they show the appeals environment in general rather than IHT-specific volumes.
What the numbers mean
Read together, the data points in one broad direction: a tax that raises more each year from a still-small share of estates, with frozen thresholds gradually drawing more families in. That backdrop tends to raise the stakes on valuation, which is where most disputes with HMRC sit.
Three cautious observations seem reasonable from the published figures. First, with receipts at £8.5 billion in 2025 to 2026 and thresholds frozen to 2030-31, the amount of tax turning on individual valuations may keep rising, even though the share of estates paying remains below one in twenty (HMRC, 2025 to 2026; HMRC, 2022 to 2023). Second, the 13% average effective rate for 2022 to 2023 suggests that reliefs and exemptions do much of the work in the final bill (HMRC, 2022 to 2023), so how they are claimed and evidenced can matter as much as the headline rate. Third, tribunal volumes are too lumpy to read as a simple gauge of how contentious IHT has become; they are better treated as context than as a trend line. None of this is advice about any individual estate, and the underlying figures are subject to revision.
For readers who want the wider framework behind these numbers, our estate planning guide sets out how wills, trusts and allowances fit together, and Inheritance Tax Explained covers the rules in more depth.
Sources and methodology
Every statistic on this page comes from a named official source and was checked against the live publication. Figures are reproduced as published and are subject to revision by the issuing body. Where a number could not be confirmed from a named source, it has been described qualitatively rather than stated. The main sources are listed below.
- HMRC Inheritance Tax liabilities statistics, tax year 2022 to 2023 (published 31 July 2025): taxpaying estates, share of deaths, total liabilities, average liability, effective rate, residence nil-rate band use. Commentary and background quality report.
- HMRC tax and NICs receipts, annual bulletin (published 23 April 2026): UK inheritance tax receipts for 2025 to 2026 and 2006 to 2007. HMRC receipts bulletin.
- Ministry of Justice, Tribunal Statistics Quarterly, October to December 2025 (published 15 May 2026): First-tier Tribunal Tax Chamber disposals. MoJ Tribunal Statistics.
- Rates, allowances and thresholds: gov.uk, Inheritance Tax and gov.uk, appeal to the tax tribunal, current as at July 2026 and subject to change.
Scotland and Northern Ireland
Inheritance tax is a UK-wide tax, so the receipts and thresholds above apply across all four nations (gov.uk, as at July 2026, subject to change). The wider law around estates differs, however. Scotland has its own succession rules, including legal rights for a spouse and children, and uses confirmation rather than a grant of probate; Northern Ireland has a separate but broadly similar system to England and Wales. Tax appeals across the UK are heard by the First-tier Tribunal Tax Chamber.
Frequently asked questions
How much does inheritance tax raise each year?
HMRC reports that UK inheritance tax receipts reached £8.5 billion in the 2025 to 2026 financial year, up from £3.5 billion twenty years earlier in 2006 to 2007 (HMRC receipts bulletin, published 23 April 2026). Receipts count tax actually paid in the year and can be revised, so the figure may change in later releases.
How many estates actually pay inheritance tax?
In the 2022 to 2023 tax year, 31,500 estates gave rise to an inheritance tax charge, which HMRC records as 4.62% of UK deaths, or fewer than one in twenty estates (HMRC IHT liabilities statistics, published 31 July 2025). This is the most recent tax year HMRC has published, and the figures are subject to revision.
What do most inheritance tax disputes with HMRC involve?
Published statistics do not count dispute types, so this can only be described in general terms. Disagreements commonly concern the value of property or unlisted shares at the date of death, or whether a relief such as business or agricultural relief applies. Because tax above the thresholds is charged at 40%, a change in an agreed valuation can affect the bill materially (gov.uk, as at July 2026, subject to change).
How can an estate challenge an HMRC inheritance tax decision?
Broadly, an estate can ask HMRC for a review of the decision, consider Alternative Dispute Resolution, or appeal to the First-tier Tribunal Tax Chamber, which hears tax appeals independently (gov.uk, appeal to the tax tribunal, as at July 2026). Time limits apply, so many people choose to take advice from a qualified professional before deciding which route to follow.
Are inheritance tax appeals becoming more common?
The figures are hard to read as a simple trend. In October to December 2025, First-tier Tribunal Tax Chamber disposals rose 197% on the same quarter a year earlier, which the Ministry of Justice links largely to grouped lead cases rather than a broad rise in disputes (MoJ Tribunal Statistics, published 15 May 2026). The tax-chamber data also covers all tax types together, not inheritance tax alone.
Why is the average effective rate only 13% when the headline rate is 40%?
HMRC records an average effective rate of 13% across taxpaying estates in 2022 to 2023, against a 40% headline rate (HMRC IHT liabilities statistics, published 31 July 2025). The gap reflects tax-free thresholds, spouse and charity exemptions, and reliefs, which reduce the taxable portion before the 40% rate applies. The effect varies widely between estates and can change as the rules change.
About Fairchild Oldfield
Fairchild Oldfield are estate planning specialists and will writers based in England and Wales. We help families with wills, trusts, powers of attorney and later-life planning.
We are not a firm of solicitors and this article is not legal, tax or financial advice. It is general information based on published statistics and the rules as they stood in July 2026.
Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Statistics are reproduced from named official sources and are subject to revision by those bodies. Figures, rates and rules are current as at July 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider their individual circumstances.
