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Inheritance Tax · Data

Inheritance Tax by Region in the UK

Inheritance tax bills cluster heavily in the south of England. London and the South East together account for close to half of all the tax charged across the UK.

9 min read · Written by the Fairchild Oldfield team · Last reviewed: July 2026

44%
Share of all UK inheritance tax charged that came from estates in London and the South East of England in the 2022 to 2023 tax year.
Source: HMRC Inheritance Tax liabilities statistics, 2022-23, published 31 July 2025, subject to change.

In the 2022 to 2023 tax year, the South East of England had the most taxpaying estates of any UK region at 6,650, while London's 5,100 taxpaying estates carried the largest total liability at £1.53 billion, an average of £300,000 per taxpaying estate in the capital (HMRC Inheritance Tax liabilities statistics, tax year 2022-23, published 31 July 2025, subject to change).

Inheritance tax is a UK-wide tax with the same thresholds and rates everywhere, yet the bills it produces are far from evenly spread. Because property and investment values are higher in London and the South East, more estates in those areas exceed the tax-free bands, and the charges they face are larger. This piece pulls together the most recent official HMRC statistics on how inheritance tax is distributed across UK regions, with every figure carrying its source and reference period. It sits within our Inheritance Tax Explained guide, complements our UK IHT statistics overview, and forms part of our wider estate planning guide. Figures are current as at July 2026 and subject to change.

The regional picture for inheritance tax

Inheritance tax is concentrated in the south of England. In the 2022 to 2023 tax year, London and the South East together accounted for 44% of the total inheritance tax charged across the UK, and 53% of the total liability arising in England alone (HMRC Inheritance Tax liabilities statistics, 2022-23, published 31 July 2025, subject to change). Across the whole UK, 31,500 estates paid inheritance tax that year, equal to 4.62% of the 683,000 deaths recorded, so the regional totals sit within a tax that reaches a small minority of estates everywhere (HMRC liabilities statistics, 2022-23, subject to change).

One point matters when reading these figures. For the 2022 to 2023 tax year, the regional split was based on the domicile of the deceased rather than the location of their main home, so HMRC presents the geographic breakdown for illustrative purposes only (HMRC liabilities statistics, 2022-23, subject to change). The regional pattern is indicative of where liabilities arise, not a precise map of where every taxpaying estate was located.

Key figures at a glance

Across the latest HMRC regional data, two southern regions dominate both the count of taxpaying estates and the tax charged, while the North East, Northern Ireland and Wales sit at the other end. The table below sets out each headline regional statistic with its source and reference period. All rows draw on HMRC liabilities data for the 2022-23 tax year, the most recent detailed regional breakdown available.

StatisticFigureReference periodSource
London + South East share of UK IHT charged44%2022-23HMRC liabilities stats
London + South East share of England's IHT liability53%2022-23HMRC liabilities stats
Taxpaying estates, South East (most of any region)6,6502022-23HMRC liabilities stats
Taxpaying estates, London5,1002022-23HMRC liabilities stats
Total IHT liability, London (highest of any region)£1.53 billion2022-23HMRC liabilities stats
Total IHT liability, South East£1.45 billion2022-23HMRC liabilities stats
Average charge per taxpaying estate, London£300,0002022-23HMRC liabilities stats

Source: HMRC Inheritance Tax liabilities statistics, tax year 2022-23 (published 31 July 2025). Regional breakdowns for 2022-23 are based on the domicile of the deceased and are illustrative only. Figures as at July 2026 and subject to change.

Estates and liabilities by region

The South East recorded the most taxpaying estates of any UK region in 2022-23 at 6,650, while London's smaller count of 5,100 estates carried the single largest total liability at £1.53 billion (HMRC Inheritance Tax liabilities statistics, 2022-23, published 31 July 2025, subject to change). That contrast, more estates in the South East but more tax from London, reflects the higher average value of the estates charged in the capital.

RegionTaxpaying estates (2022-23)Total IHT liability (2022-23)Source
South East England6,650£1.45 billionHMRC liabilities stats
London5,100£1.53 billionHMRC liabilities stats
North East England, Northern Ireland, WalesLowest numbers of taxpaying estates (specific counts not quoted here)Not quoted hereHMRC liabilities stats

Source: HMRC Inheritance Tax liabilities statistics, tax year 2022-23 (published 31 July 2025). HMRC's Tables 12.8 and 12.9 give the full breakdown of estates and tax charged by government office region. Where a precise per-region figure is not quoted above, it is because this piece cites only the figures HMRC states directly in its commentary; the full regional table is available in the source data. Figures as at July 2026 and subject to change.

Underlying these regional totals are the same tax-free bands that apply everywhere in the UK: a nil-rate band of £325,000 per person, frozen to the end of the 2030-31 tax year (5 April 2031), and a residence nil-rate band of up to £175,000 where a home passes to direct descendants, frozen to the end of the 2030-31 tax year (5 April 2031) (5 April 2031), with the standard rate at 40% (gov.uk, as at July 2026, subject to change). Because those bands are the same nationwide, the regional differences come from asset values rather than from any regional variation in the rules.

Where the tax concentrates

London and the South East

London and the South East carry the heaviest inheritance tax load in the UK. Together they accounted for 44% of all UK inheritance tax charged in 2022-23, and 53% of the liability arising in England on its own (HMRC Inheritance Tax liabilities statistics, 2022-23, subject to change). The average taxpaying estate in London was charged £300,000, well above the UK-wide average liability of £212,000 across all taxpaying estates (HMRC liabilities statistics, 2022-23, subject to change).

The likely driver is property. Higher home values in and around the capital can push an estate over the combined nil-rate and residence nil-rate bands more readily, and can enlarge the taxable value once it does (gov.uk, as at July 2026, subject to change). This is an observation drawn from the published data rather than a prediction, and any individual estate's position depends on its own assets, debts and beneficiaries.

Because the 2022-23 breakdown is based on the deceased's domicile rather than the location of their home, HMRC treats the regional split as illustrative only.

Average London bill

£300,000

Average inheritance tax charged per taxpaying estate in London in 2022-23, against a UK-wide average of £212,000 across all taxpaying estates (HMRC liabilities statistics, 2022-23, subject to change).

The lowest-charge regions

At the other end of the scale, the North East of England, Northern Ireland and Wales had the lowest numbers of taxpaying estates in 2022-23 (HMRC Inheritance Tax liabilities statistics, 2022-23, published 31 July 2025, subject to change). Lower average property and asset values in these areas mean fewer estates reach the tax-free thresholds, and those that do tend to sit closer to the bands.

The same rules apply in every UK nation, but the surrounding law differs. Scotland has its own rules of succession, including legal rights for spouses, civil partners and children, and Northern Ireland has its own probate system, so while the tax thresholds and rates are UK-wide, how an estate is administered can vary (gov.uk, as at July 2026, subject to change). The regional differences in the HMRC data are about where liabilities arise, not about differences in the tax itself.

Interpretation

What the numbers mean

I

A southern concentration

London and the South East accounted for 44% of UK inheritance tax charged in 2022-23. Source: HMRC, 2022-23, subject to change.

II

Property drives the gap

With uniform £325,000 bands nationwide, higher southern home values pull more estates over the threshold. Source: gov.uk, as at July 2026, subject to change.

III

Bigger bills in the capital

London's average charge of £300,000 sits above the UK-wide £212,000 average liability. Source: HMRC, 2022-23, subject to change.

IV

Read the split with care

The 2022-23 regional data is based on the deceased's domicile and is illustrative only. Source: HMRC, 2022-23, subject to change.

Taken together, the data suggests inheritance tax lands unevenly across the UK, with the south of England carrying a disproportionate share because of asset values rather than any regional rule (HMRC liabilities statistics, 2022-23, subject to change). Since the nil-rate band is frozen to the end of 2030-31 (5 April 2031) and the residence nil-rate band to the end of 2030-31 (5 April 2031) (5 April 2031) while property values move, the regional pattern could shift over time, though the direction depends on how house prices behave in each area (gov.uk, as at July 2026, subject to change). These are observations about published data, not predictions, and they say nothing definitive about any single estate.

Where an estate may approach the thresholds, in any region, many people choose to review their position periodically and, where the figures are close, to discuss it with a qualified professional. General reading such as our Inheritance Tax Explained guide can help frame those conversations, but it is not a substitute for advice on individual circumstances.

Sources and methodology

Every statistic on this page comes from a named official source and has been checked against the current published figures. The regional figures relate to the 2022-23 tax year, the most recent detailed regional breakdown available, and are based on the domicile of the deceased, which HMRC notes makes them illustrative rather than an exact geographic map.

  • HMRC Inheritance Tax liabilities statistics (published 31 July 2025), tax year 2022-23: regional shares, taxpaying estates and liabilities for London and the South East, the average London bill, the UK-wide totals and the lowest-charge regions. Tables 12.8 and 12.9 hold the full breakdown by government office region. gov.uk
  • gov.uk Inheritance Tax: the £325,000 nil-rate band, the residence nil-rate band of up to £175,000, the 40% standard rate, the freeze of the nil-rate band to the end of 2030-31 (5 April 2031) and the residence nil-rate band to the end of 2030-31 (5 April 2031) (5 April 2031), and the point that thresholds and rates are UK-wide. gov.uk

All figures are current as at July 2026 and are subject to change. Statistics are quoted as published; nothing on this page has been estimated, extrapolated or rounded beyond the source.

Frequently asked questions

Which UK region pays the most inheritance tax?

London carried the largest total inheritance tax liability of any region in 2022-23, at £1.53 billion from 5,100 taxpaying estates, while the South East had the most taxpaying estates at 6,650 (HMRC liabilities statistics, 2022-23, subject to change). Together the two regions accounted for 44% of all UK inheritance tax charged that year.

Why does the South East pay so much inheritance tax?

Higher property and asset values are the likely reason. The nil-rate band of £325,000 and residence nil-rate band of up to £175,000 apply UK-wide, so where homes are worth more, estates can exceed the bands more readily (gov.uk, as at July 2026, subject to change). This can help explain why London and the South East accounted for 44% of UK inheritance tax charged in 2022-23 (HMRC, 2022-23, subject to change).

Which regions pay the least inheritance tax?

The North East of England, Northern Ireland and Wales had the lowest numbers of taxpaying estates in 2022-23 (HMRC liabilities statistics, 2022-23, subject to change). Lower average property values generally mean fewer estates reach the tax-free thresholds, though the same UK-wide rates and bands apply everywhere.

Do inheritance tax rates differ by region in the UK?

No. Inheritance tax is a UK-wide tax with the same thresholds and rates across England, Wales, Scotland and Northern Ireland, including the £325,000 nil-rate band and the 40% standard rate (gov.uk, as at July 2026, subject to change). Regional differences in the HMRC data reflect where liabilities arise, driven mainly by asset values, not any variation in the rules.

What was the average inheritance tax bill in London?

The average taxpaying estate in London was charged £300,000 in the 2022-23 tax year, above the UK-wide average liability of £212,000 across all taxpaying estates (HMRC liabilities statistics, 2022-23, subject to change). Averages can be pulled up by a small number of very large estates, so many individual bills sit well below this figure.

Are the regional statistics based on where people lived?

Not exactly. For 2022-23, HMRC based the regional breakdown on the domicile of the deceased rather than the location of their main home, so it presents the split for illustrative purposes only (HMRC liabilities statistics, 2022-23, subject to change). The figures indicate where liabilities arise rather than mapping each taxpaying estate to a precise location.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

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. Figures 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 your individual circumstances.

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