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Inheritance Tax · Data

UK Inheritance Tax Statistics 2026

Fewer than one in twenty deaths results in an inheritance tax charge, yet receipts have reached record levels as frozen thresholds meet rising asset values.

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

£8.5bn
UK inheritance tax receipts in the 2025 to 2026 financial year, the highest recorded and up from £3.5 billion in 2006 to 2007.
Source: HMRC tax receipts bulletin, 2025-26, published 19 June 2026, subject to change.

In the 2022 to 2023 tax year, 31,500 estates paid inheritance tax, which was 4.62% of the 683,000 UK deaths that year, and those estates carried £6.70 billion of liabilities between them (HMRC Inheritance Tax liabilities statistics, tax year 2022-23, published 31 July 2025, subject to change).

Inheritance tax reaches a minority of estates, but the amounts collected have grown as the main tax-free thresholds have stayed fixed while property and investment values have risen. This piece pulls together the most recent official statistics from HMRC, the Office for Budget Responsibility and gov.uk, sets out how many people are affected, how much is collected, and how reliefs shape the final bills. It sits within our Inheritance Tax Explained guide, alongside our note on IHT thresholds and allowances, and forms part of our wider estate planning guide. Every figure carries its source and reference period, and figures are current as at July 2026 and subject to change.

The headline inheritance tax numbers for 2026

Inheritance tax raised £8.5 billion for HM Treasury in the 2025 to 2026 financial year, its highest recorded level, up from £3.5 billion in 2006 to 2007 (HMRC tax receipts bulletin, 2025-26, published 19 June 2026, subject to change). Even so, it remains a small share of the total tax take. The OBR estimates inheritance tax at around 0.7% of all receipts and about 0.3% of national income, or roughly £300 per household, for 2025-26 (OBR, November 2025 forecast, subject to change).

Key figures at a glance

Across the latest official data, inheritance tax is paid by a small share of estates but generates billions in liabilities, with average bills concentrated in the largest estates. The table below sets out each headline statistic with its source and reference period. Some figures come from HMRC liabilities data for the 2022-23 tax year, and others from receipts and forecast data for 2025-26, so the reference periods differ by row.

StatisticFigureReference periodSource
IHT receipts£8.5 billion2025-26HMRC receipts bulletin
Taxpaying estates31,5002022-23HMRC liabilities stats
Share of UK deaths charged4.62% (of 683,000)2022-23HMRC liabilities stats
Total IHT liabilities£6.70 billion2022-23HMRC liabilities stats
Average liability per taxpaying estate£212,0002022-23HMRC liabilities stats
Average effective tax rate13%2022-23HMRC liabilities stats
IHT as share of all receipts (OBR)~0.7%2025-26OBR forecast

Sources: HMRC tax receipts bulletin (published 19 June 2026), HMRC Inheritance Tax liabilities statistics (published 31 July 2025) and OBR (November 2025). Figures as at July 2026 and subject to change.

Who is affected

How many estates actually pay

Only a small minority of estates pay inheritance tax. In the 2022 to 2023 tax year, 31,500 estates were charged, equal to 4.62% of the 683,000 UK deaths recorded, an increase of 3,700 estates, or 13%, on the previous year (HMRC Inheritance Tax liabilities statistics, tax year 2022-23, subject to change). The great majority of estates fall within the available tax-free bands and pay nothing.

The bills that do arise are heavily skewed toward the largest estates. HMRC reports that estates with a net value between £300,000 and £400,000 faced an average charge of around £13,500, while those valued above £10 million averaged roughly £3.63 million (HMRC liabilities statistics, 2022-23, subject to change). This spread is why the average bill across all taxpaying estates, £212,000, sits well above what a typical mid-sized estate pays.

The proportion of deaths charged has crept up in recent years, which HMRC and the OBR link mainly to frozen thresholds and rising asset values rather than to any rate change.

Share of deaths charged

4.62%

Of the 683,000 UK deaths in 2022-23, 31,500 estates paid inheritance tax (HMRC liabilities statistics, 2022-23, subject to change).

Inheritance tax receipts over time

Receipts have risen substantially over two decades. HMRC records inheritance tax receipts growing from £3.5 billion in 2006 to 2007 to £8.5 billion in 2025 to 2026, and attributes the increase partly to tax-free thresholds being held while asset values climbed (HMRC tax receipts bulletin, published 19 June 2026, subject to change). The OBR forecasts inheritance tax at around £8.7 billion for 2025-26 on its own measure and notes receipts have grown as a share of GDP since 2009-10, mainly because of rising asset prices (OBR, November 2025 forecast, subject to change).

Financial yearIHT receiptsSource
2006-07£3.5 billionHMRC receipts bulletin
2025-26 (receipts)£8.5 billionHMRC receipts bulletin
2025-26 (OBR forecast)~£8.7 billionOBR

Sources: HMRC tax receipts bulletin (published 19 June 2026) and OBR (November 2025). The two 2025-26 figures use different measures, so they are not directly comparable. Figures as at July 2026 and subject to change.

The main tax-free bands underlying these totals are the nil-rate band of £325,000 per person and the residence nil-rate band of up to £175,000 where a home passes to direct descendants, both frozen to the end of the 2030-31 tax year (5 April 2031), with the standard rate at 40% (gov.uk, as at July 2026, subject to change). Our note on IHT thresholds and allowances explains how these bands combine.

Reliefs and exemptions in the data

Reliefs and exemptions remove a large amount of value from charge each year. In 2022-23, the spouse and civil partner exemption accounted for £5.98 billion of transferred value across 5,070 estates, and the residence nil-rate band was used by 30,600 estates, sheltering £7.72 billion of chargeable value (HMRC Inheritance Tax liabilities statistics, 2022-23, subject to change). These reliefs help explain why the average effective rate paid, at 13%, sits well below the 40% headline rate.

Business and agricultural reliefs also feature. Business property relief covered £3.34 billion across 3,840 estates and agricultural property relief covered £1.9 billion across 1,730 estates in the same year (HMRC liabilities statistics, 2022-23, subject to change). The spouse or civil partner exemption remains the single largest, reflecting that transfers between spouses and civil partners are generally exempt and that unused nil-rate band can pass to the survivor (gov.uk, as at July 2026, subject to change).

Relief or exemptionValueEstatesReference period
Spouse / civil partner exemption£5.98 billion5,0702022-23
Residence nil-rate band£7.72 billion sheltered30,6002022-23
Business property relief£3.34 billion3,8402022-23
Agricultural property relief£1.9 billion1,7302022-23

Source: HMRC Inheritance Tax liabilities statistics, tax year 2022-23 (published 31 July 2025). Figures as at July 2026 and subject to change. The rules on business and agricultural reliefs are due to change from April 2026, so these historic figures may not reflect the position for later years (gov.uk, as at July 2026, subject to change).

Interpretation

What the numbers mean

I

A minority tax, widening slowly

At 4.62% of deaths in 2022-23, inheritance tax still reaches few estates, though that share has edged up. Source: HMRC, 2022-23, subject to change.

II

Frozen bands do the work

With the £325,000 band held to 2030-31, more estates can drift over the threshold as values rise. Source: gov.uk, as at July 2026, subject to change.

III

Bills concentrate at the top

The £212,000 average is pulled up by large estates; mid-sized estates typically pay far less. Source: HMRC, 2022-23, subject to change.

IV

Reliefs shape the effective rate

Spouse, residence, business and agricultural reliefs help hold the average effective rate near 13%. Source: HMRC, 2022-23, subject to change.

Read together, the data suggests a tax that touches a small group but is growing in reach and yield. The gap between the 40% headline rate and the 13% average effective rate shows how much reliefs and the tax-free bands matter in practice (HMRC liabilities statistics, 2022-23, subject to change). Because the main bands are frozen to the end of 2030-31 (5 April 2031) while asset values move, the number of estates drawn in can rise without any change to the rate (gov.uk, as at July 2026, subject to change). These are observations about published data, not predictions, and any individual estate's position depends on its own assets, debts and beneficiaries.

For anyone whose estate may approach the thresholds, 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 HMRC liabilities figures relate to the 2022-23 tax year, the most recent detailed data available, while receipts and forecast figures relate to 2025-26. Reference periods differ between datasets, so figures may not be directly comparable.

  • HMRC Inheritance Tax liabilities statistics (published 31 July 2025), tax year 2022-23: taxpaying estates, share of deaths, total liabilities, average liability, effective rate, and reliefs. gov.uk
  • HMRC tax receipts and National Insurance contributions bulletin (published 19 June 2026), financial year 2025-26: total IHT receipts and the long-run trend from 2006-07. gov.uk
  • Office for Budget Responsibility, inheritance tax (November 2025 forecast): forecast receipts, share of total receipts and share of national income. obr.uk
  • gov.uk Inheritance Tax: nil-rate band, residence nil-rate band, 40% rate, spouse and civil partner exemption and the threshold freeze to 2030-31. 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

How many people pay inheritance tax in the UK?

A small minority. In the 2022 to 2023 tax year, 31,500 estates paid inheritance tax, which was 4.62% of the 683,000 UK deaths that year (HMRC liabilities statistics, 2022-23, subject to change). The proportion has risen in recent years, which HMRC links mainly to frozen thresholds and rising asset values rather than any rate increase.

How much does inheritance tax raise for the UK?

Inheritance tax raised £8.5 billion in the 2025 to 2026 financial year, the highest recorded and up from £3.5 billion in 2006 to 2007 (HMRC receipts bulletin, published 19 June 2026, subject to change). The OBR puts it at roughly 0.7% of all receipts, a small share of the total tax take (OBR, November 2025, subject to change).

What is the average inheritance tax bill?

Across all taxpaying estates in 2022-23, the average liability was £212,000, but this is skewed by large estates (HMRC liabilities statistics, 2022-23, subject to change). Estates valued between £300,000 and £400,000 averaged around £13,500, while those above £10 million averaged about £3.63 million, so a typical mid-sized estate generally pays far less than the overall average.

Why is inheritance tax raising more money?

HMRC and the OBR attribute rising receipts mainly to the tax-free thresholds being frozen while property and investment values increase, which can draw more estates into charge over time (OBR, November 2025, subject to change). The £325,000 nil-rate band and £175,000 residence nil-rate band are frozen to the end of 2030-31 (5 April 2031) (gov.uk, as at July 2026, subject to change).

What is the effective inheritance tax rate people actually pay?

The average effective rate across taxpaying estates was 13% in 2022-23, well below the 40% headline rate (HMRC liabilities statistics, 2022-23, subject to change). The gap reflects the tax-free bands and reliefs, including the spouse and civil partner exemption and the residence nil-rate band, which remove a large amount of value from charge each year.

Do these statistics apply across the whole UK?

Inheritance tax is a UK-wide tax, so the HMRC and OBR figures cover England, Wales, Scotland and Northern Ireland (gov.uk, as at July 2026, subject to change). The surrounding succession and property law differs between nations, particularly in Scotland, so the way an estate is administered can vary even though the tax rules and thresholds are the same across the UK.

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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