The picture in Scotland and Northern Ireland
Inheritance tax is a UK-wide tax, so HMRC's receipts and liabilities figures cover the whole United Kingdom, and the £325,000 nil-rate band, the up to £175,000 residence band and the 40% rate apply across England, Wales, Scotland and Northern Ireland alike (gov.uk, as at July 2026, subject to change). The published statistics are not routinely broken down by nation. What differs is the surrounding succession law: Scotland has its own rules, including legal rights giving a spouse and children a fixed share, and uses confirmation rather than a grant of probate. For the wider framework, see our Inheritance Tax Explained guide.
Frequently asked questions
How much did inheritance tax raise in the UK last year?
HMRC collected £8.5 billion in inheritance tax in the 2025 to 2026 tax year, the highest annual total on record and up from £3.5 billion in 2006 to 2007 (HMRC bulletin, updated 19 June 2026, as at July 2026, subject to change). Receipts can move year to year, so this figure may be revised.
What share of estates actually pay inheritance tax?
A minority. In the most recent detailed year, 2022-23, around 31,500 estates had tax to pay and 4.62% of UK deaths resulted in an inheritance tax charge (HMRC, published 31 July 2025, as at July 2026, subject to change). Most estates fall within the nil-rate bands or qualify for exemptions and pay nothing.
Why do receipts keep rising if few estates pay?
Receipts have grown mainly because asset values, especially property, have risen while the £325,000 nil-rate band has been frozen since 2009 and is now frozen to the end of 2030-31 (5 April 2031) (gov.uk, as at July 2026, subject to change). A flat threshold against rising values can draw more estates in and increase the total over time, depending on circumstances.
What is the average inheritance tax bill?
Across taxpaying estates in 2022-23, the average tax was £212,000, and the average effective rate was around 13% rather than the headline 40% (HMRC, published 31 July 2025, as at July 2026, subject to change). Averages hide a wide spread, and any individual estate can differ greatly depending on its assets and reliefs.
How much does the OBR forecast inheritance tax will raise?
The Office for Budget Responsibility forecast that inheritance tax would raise £8.7 billion in 2025-26, equal to about 0.7% of all receipts, 0.3% of national income or roughly £300 per household (OBR, November 2025 forecast, as at July 2026, subject to change). Forecasts are revised as the economy and policy change.
Where do the exemptions and reliefs go?
In 2022-23 the residence nil-rate band sheltered £7.72 billion across 30,600 estates, business property relief covered £3.34 billion, charity transfers £1.92 billion and agricultural property relief about £1.9 billion (HMRC, published 31 July 2025, as at July 2026, subject to change). These reliefs are a large reason the effective rate sits well below the headline.
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.
Sources and methodology
Every statistic on this page comes from a named official source and was checked against the live publication. Receipts figures record what HMRC collected in a period; liabilities figures record tax created on estates and are published about two years in arrears; the two are measured differently and are not directly comparable. Percentages and averages are quoted exactly as the source states them, without further rounding or extrapolation.
- UK IHT receipts (£8.5bn 2025-26; £3.5bn 2006-07): HMRC tax receipts and NICs annual bulletin, updated 19 June 2026.
- Monthly receipts (£1.4bn, April to May 2026): HMRC tax receipts and NICs monthly bulletin, updated 19 June 2026.
- Estates, deaths, liabilities, reliefs (2022-23): HMRC inheritance tax liabilities statistics commentary, published 31 July 2025.
- Forecast (£8.7bn 2025-26; per-household figure): Office for Budget Responsibility, inheritance tax, November 2025 Economic and Fiscal Outlook.
- Rates, bands and the freeze: gov.uk/inheritance-tax and gov.uk nil-rate band publication.
All figures as at July 2026 and subject to change. HMRC and OBR publications are updated periodically and may be revised.
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. Statistics are drawn from named official sources and may be revised by their publishers. 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.
