Who Pays UK Inheritance Tax: 2026 Data

Inheritance tax has a reputation out of proportion to the number of estates that pay it. In the tax year 2023 to 2024, 30,400 estates created an inheritance tax charge, equal to 4.72% of the 644,000 deaths in the UK that year (HMRC, 30 July 2026). This briefing sets out who those payers are, by estate size, by age, by gender and by region, with every statistic dated, sourced and geographically scoped.

Two terms are used throughout and should not be confused. A taxpaying estate is the estate of a person who died in the tax year and on which inheritance tax was due. The average effective tax rate (AETR) is the tax charged as a percentage of the estate's net value, which is lower than the 40% headline rate because of tax-free allowances, exemptions and reliefs. Unless stated otherwise, figures are for the United Kingdom and are nominal. Figures are current as at July 2026 and are subject to change.

Executive summary

30,400 estates created an inheritance tax charge in 2023-24, equal to 4.72% of the 644,000 UK deaths that year, the highest taxed share since 2006-07 (HMRC, 30 July 2026).
UK inheritance tax liabilities reached £7.03 billion for deaths in 2023-24, up £0.33 billion (5%) on the year before (HMRC, 30 July 2026).
Estates of people who died aged 85 or over paid £3.97 billion, 56% of all inheritance tax in 2023-24, and those aged 75 and over paid 83% of the total (HMRC, 30 July 2026).
The average effective tax rate across all taxpaying estates was 13% in 2023-24, against the 40% headline rate (HMRC, 30 July 2026).
The effective rate peaks at 25% for estates worth £2 million to £7.5 million, then falls to 18% for estates over £10 million, because reliefs are concentrated in the largest estates (HMRC, 30 July 2026).
London and the South East together accounted for 46% of all UK inheritance tax charged in 2023-24, from 11,120 taxpaying estates (HMRC, 30 July 2026).
The spouse and civil partner exemption removed £6.8 billion from charge across 5,560 estates in 2023-24, so much inheritance tax falls on the second death (HMRC, 30 July 2026).
The Institute for Fiscal Studies projected the share of deaths incurring inheritance tax rising from around 4% to roughly 7% by 2032-33 under frozen thresholds (IFS, September 2023).

30,400 estates were liable to inheritance tax in the tax year 2023 to 2024, down from 31,500 in 2022-23, a fall of 1,100 estates or 3.6% (HMRC, 30 July 2026, UK).
Those 30,400 estates represented 4.72% of the 644,000 UK deaths in 2023-24, the highest taxed share since 2006-07, when it was 5.96% (HMRC, 30 July 2026, UK).
More than 95% of UK deaths in 2023-24 resulted in no inheritance tax charge at all (HMRC, 30 July 2026, UK).
UK inheritance tax liabilities totalled £7.03 billion for deaths in 2023-24, up £0.33 billion or 5% on £6.70 billion in 2022-23 (HMRC, 30 July 2026, UK).
The average effective inheritance tax rate on taxpaying estates was 13% in 2023-24, against a 40% headline rate (HMRC, 30 July 2026, UK).
The effective rate rose with estate value up to 25% for estates worth £2 million to £7.5 million, then fell to 18% for estates over £10 million (HMRC, 30 July 2026, UK).
The 220 taxpaying estates valued at more than £10 million paid £4.72 million each on average in 2023-24, the highest average bill of any band (HMRC, 30 July 2026, UK).
Estates of people who died aged 85 or over paid £3.97 billion, 56% of the total, and those aged 75 to 84 paid a further £1.87 billion, 27% (HMRC, 30 July 2026, UK).
Taxpaying male-owned estates carried a liability of £3.53 billion and female-owned estates £3.49 billion in 2023-24, a near-even split (HMRC, 30 July 2026, UK).
The average net value of a taxpaying male-owned estate was £1.4 million, against £1.2 million for a female-owned estate, in 2023-24 (HMRC, 30 July 2026, UK).
London and the South East together accounted for 46% of all UK inheritance tax charged in 2023-24, and 55% of England's total (HMRC, 30 July 2026, UK).
The South East had the most taxpaying estates of any region, 6,310, with £1.83 billion of tax in 2023-24 (HMRC, 30 July 2026, England).
London estates carried the highest average bills, at £297,000 per taxpaying estate across 4,810 estates, totalling £1.43 billion in 2023-24 (HMRC, 30 July 2026, England).
The spouse and civil partner exemption was used by 5,560 estates and removed £6.8 billion from charge in 2023-24, up 14% on the prior year (HMRC, 30 July 2026, UK).
Business property relief was worth £3.85 billion across 4,060 estates and agricultural property relief £2.11 billion across 2,140 estates in 2023-24 (HMRC, 30 July 2026, UK).

How many people actually pay

Inheritance tax is a minority event at death. In 2023-24, 30,400 estates were taxed out of 644,000 UK deaths, so 95.28% of deaths created no charge at all (HMRC, 30 July 2026). The number of taxpaying estates actually fell by 1,100 on the year, even as the taxed share of deaths rose, because total deaths fell faster.

Measure, tax year	2022-23	2023-24
Taxpaying estates (UK)	31,500	30,400
UK deaths	683,000	644,000
Taxed share of deaths	4.62%	4.72%
Total IHT liability	£6.70bn	£7.03bn
Average effective rate	n/a	13%

Source: HMRC Inheritance Tax liabilities statistics commentary, 30 July 2026. UK.

The 4.72% taxed share is the highest since 2006-07, when it was 5.96% (HMRC, 30 July 2026). The direction of travel is upward: the Institute for Fiscal Studies projected the taxed share reaching around 7% by 2032-33 if thresholds stayed frozen (IFS, September 2023), and the Office for Budget Responsibility forecasts UK receipts rising from £8.7 billion in 2025-26 to £14.7 billion by 2030-31 (OBR, November 2025).

Two series, do not merge. Liabilities are the tax created on estates of people who died in a given tax year, published later by HMRC. Receipts are cash HMRC collects in a financial year, often months after death. The IFS projection predates the Autumn Budget 2025 freeze extension and the pension and relief reforms, so it is directional rather than a current official forecast.

Who pays, by estate size

The payers cluster around the top of the wealth distribution, but the tax does not simply rise in lockstep with estate value. The average effective rate climbs from 4% on estates of £300,000 to £400,000, reaches 25% on estates of £2 million to £7.5 million, and then falls back to 18% on estates over £10 million (HMRC, 30 July 2026). The turning point is the signature of reliefs, which are concentrated in the very largest estates.

Net estate value band	Taxpaying estates	Average tax per estate	Average effective rate
£300,000 to £400,000	2,300	£13,800	4%
£1m to £1.5m	7,770	£151,000	12%
£1.5m to £2m	2,930	£324,000	19%
£2m to £7.5m	n/a	n/a	25%
£7.5m to £10m	n/a	n/a	23%
Over £10m	220	£4.72m	18%

Source: HMRC Inheritance Tax liabilities statistics commentary, 30 July 2026, Figure 3 and value-band tables. UK. Cells marked "n/a" are not published as single figures in the released commentary.

The estate that pays the highest effective rate is not the largest one. An estate around £3 million made mostly of a home and investments has little to shelter and can face close to the headline treatment on its taxable slice, while a much larger estate holding a qualifying trading business or farmland can carry a materially lower effective rate. The 220 estates over £10 million still paid the most in cash, £4.72 million each on average (HMRC, 30 July 2026).

Limitation. The average effective rate for each band is a mean and conceals a wide spread within the band. The over-£10 million band contains a small number of estates, so its average is sensitive to a handful of very large or heavily-relieved estates in any single year.

Who pays, by age and gender

Inheritance tax is overwhelmingly a tax on the estates of the very old. Estates of people who died aged 85 or over paid £3.97 billion in 2023-24, 56% of the £7.03 billion total, and those aged 75 to 84 paid a further £1.87 billion, 27% (HMRC, 30 July 2026). Together, estates of people aged 75 and over paid 83% of all inheritance tax. That pattern is consistent with much of the tax falling on the second death of a couple, after the spouse exemption has deferred any charge on the first.

Group	IHT liability, 2023-24	Share of total
Died aged 85 or over	£3.97bn	56%
Died aged 75 to 84	£1.87bn	27%
Died under 75 or age unknown	£1.20bn	17%
Male-owned estates	£3.53bn	50%
Female-owned estates	£3.49bn	50%

Source: HMRC Inheritance Tax liabilities statistics commentary, 30 July 2026. UK. Shares are of the £7.03 billion total; figures are rounded, so age shares sum to 100% only approximately.

The gender split is close to even in cash terms, £3.53 billion from male-owned estates against £3.49 billion from female-owned, yet the average female-owned taxpaying estate was smaller, at £1.2 million against £1.4 million for male-owned estates (HMRC, 30 July 2026). A near-equal total from smaller average estates implies a larger number of taxpaying female-owned estates, again pointing to longevity and the second death.

Definition. HMRC classifies estates as male-owned or female-owned by the sex of the deceased. The category does not capture jointly held wealth during life, and the second-death interpretation is an inference from the age and exemption data, not a figure HMRC states directly.

Who pays, by region

Inheritance tax is concentrated in the higher-value housing markets of southern England. London and the South East together raised 46% of all UK inheritance tax in 2023-24 from 11,120 taxpaying estates, and 55% of England's total (HMRC, 30 July 2026). The North East, Wales and Northern Ireland had the fewest taxpaying estates, which HMRC attributes to lower property values.

Region	Taxpaying estates, 2023-24	Tax charged	Average per estate
South East	6,310	£1.83bn	~£290,000
London	4,810	£1.43bn	£297,000
London + South East	11,120	46% of UK total	n/a
Lowest: North East, Wales, N. Ireland	Fewest of any areas	Lowest shares	n/a

Source: HMRC Inheritance Tax liabilities statistics commentary, 30 July 2026. Regional figures are by the deceased's region of residence. The South East average is derived from £1.83bn over 6,310 estates; the London average is as published.

Because the tax-free bands are identical nationwide while house prices are not, a frozen threshold bites hardest where property is dearest. The average house price in England was £292,000 in October 2025, close to the £325,000 nil-rate band that has not changed since April 2009 (HM Land Registry UK HPI, October 2025). This is a geographic feature of fiscal drag, not a policy aimed at any region.

Limitation. Region reflects the deceased's place of residence, not necessarily where the assets sit. Regional counts are rounded by HMRC and can move year to year with a small number of very large estates. The South East average shown is derived, not a published HMRC figure.

What keeps most people out, and cuts the top rate

The reason so few estates pay, and the reason the largest pay a lower effective rate, is the same: allowances, exemptions and reliefs. The spouse and civil partner exemption alone removed £6.8 billion from charge across 5,560 estates in 2023-24, up 14% on the year (HMRC, 30 July 2026). Charitable gifts removed a further £1.94 billion across 10,400 estates.

Exemption or relief	Value removed from charge, 2023-24	Estates using it
Spouse / civil partner exemption	£6.8bn	5,560
Business property relief (BPR)	£3.85bn	4,060
Agricultural property relief (APR)	£2.11bn	2,140
Charitable transfers	£1.94bn	10,400

Source: HMRC Inheritance Tax liabilities statistics commentary, 30 July 2026. UK.

Business and agricultural reliefs are concentrated among large estates, which is why the effective rate turns down above £7.5 million. The Institute for Fiscal Studies has estimated that around 90% of business assets receiving relief are passed on in estates worth over £2 million (IFS, September 2023). Both reliefs are being restricted: from 6 April 2026, agricultural and business property relief give 100% relief on the first £2,500,000 of combined qualifying assets per person and 50% above that, an allowance transferable between spouses and civil partners up to £5,000,000 per couple (gov.uk, 23 December 2025).

Accuracy note. The £2,500,000 relief allowance announced on 23 December 2025 replaced an earlier £1,000,000 allowance announced at the Autumn Budget 2024. Some gov.uk pages dated 30 October 2024 still show the superseded £1,000,000 figure and describe the allowance as not transferable. The current, transferable £2,500,000 figure is used here.

1. The Reliefs Cliff: the effective rate that falls at the top Estimate

Logic. Compare the average effective tax rate of the highest-taxed band with that of the very largest band, to size how far reliefs pull the top rate below the middle. A ratio below 1 means the largest estates pay a lower effective rate than mid-sized taxpaying estates.

Inputs. Average effective rate 25% for estates worth £2m to £7.5m and 18% for estates over £10m in 2023-24 (HMRC, 30 July 2026); relief concentration in large estates (IFS, September 2023).

Result (model). 18% divided by 25% is 0.72, so on the published band averages the largest estates paid roughly three-quarters of the effective rate borne by estates a fraction of their size. The effective-rate curve is single-peaked, rising to £2m–£7.5m and falling thereafter, which is the fingerprint of business and agricultural reliefs concentrated at the top.

Limitations. Band averages conceal wide within-band spreads, and the over-£10m band is small, so its average is volatile year to year. The ratio describes 2023-24 only and will change once the April 2026 relief cap takes effect. It is an illustration of the shape of the rate curve, not a claim about any individual estate.

2. The Longevity Signature: how much tax the oldest estates carry Estimate

Logic. Add the shares of inheritance tax paid by the two oldest age bands to show how far the tax rests on the estates of the very old, and read that alongside the spouse exemption to test the second-death interpretation.

Inputs. IHT paid by estates of those aged 85+ (£3.97bn, 56%) and 75–84 (£1.87bn, 27%); spouse and civil partner exemption £6.8bn across 5,560 estates, all 2023-24 (HMRC, 30 July 2026).

Result (model). 56% plus 27% is 83%, so more than four-fifths of inheritance tax is paid by estates of people who died aged 75 or over. Coupled with £6.8 billion of spouse-exempt transfers deferring tax on first deaths, the data are consistent with inheritance tax being, in large part, a tax collected on the second death of a couple, late in life.

Limitations. The 83% is a sum of two published shares and inherits their rounding. The second-death reading is an inference supported by the age and exemption data, not a figure HMRC publishes. Single people and first deaths without a surviving spouse also contribute to the totals.

3. The Southern Concentration Index: where the tax over-indexes Estimate

Logic. Compare the share of UK inheritance tax raised in London and the South East with those regions' share of UK deaths, to show where the tax is over-represented relative to mortality.

Inputs. London and South East share of UK inheritance tax 46% in 2023-24 (HMRC, 30 July 2026); those regions' share of UK deaths from ONS mortality data (ONS Deaths, 2024), which is well below 46%.

Result (model). London and the South East hold roughly a quarter of UK deaths but 46% of inheritance tax, so the tax over-indexes in southern England by close to a factor of two on our reading. Identical national thresholds meeting sharply higher southern property values are the direct cause.

Limitations. Regional death shares and tax shares come from different releases and rounding conventions, so the index is indicative, not exact. Region is by the deceased's residence. A precise index would require ONS regional death counts matched to the exact HMRC regional tax year, which we do not assert here.

Recommended charts

Five chart specifications a newsroom or analyst could build from the verified data above. No images are embedded.

Chart	Data needed	Source	Insight
The reliefs cliff	Average effective rate by estate value band, 2023-24	HMRC liabilities statistics, Fig 3	The effective rate peaks at 25% then falls to 18% at the very top
Tax by age of death	IHT liability by age band	HMRC liabilities statistics	83% of the tax is paid by estates of people aged 75+
Regional bar of tax charged	Tax charged and estate counts by region, 2023-24	HMRC liabilities statistics	London and the South East raise 46% of the UK total
Headline vs effective rate	40% headline against 13% average effective rate	HMRC liabilities statistics	Reliefs remove about two-thirds of the notional charge
What removes value from charge	Value of spouse exemption, BPR, APR, charity relief	HMRC liabilities statistics	The spouse exemption dwarfs the reliefs, at £6.8bn

Methodology

Source selection. Preference was given to primary official statistics and forecasts: HMRC Inheritance Tax liabilities statistics for the profile of who pays, the OBR for receipts forecasts, gov.uk and HM Treasury for policy parameters, HM Land Registry for house prices, ONS for deaths, and the Institute for Fiscal Studies for independent projection and relief-concentration analysis. Each figure was taken from, or traced to, its originating release.

Inclusion and exclusion. A statistic was included only where its figure, date and geography could be confirmed against a named source. The core HMRC figures were verified against the published commentary on two independent reads to guard against extraction error. Numbers that could not be verified to a primary or clearly-attributed source were excluded. Cash receipts and accrued liabilities are labelled separately and never merged.

Handling conflicts. Where sources differed, the most recent official figure was used and older figures were flagged as superseded. The agricultural and business relief allowance is stated at £2,500,000 per person, superseding the earlier £1,000,000 announcement. The threshold freeze runs to the end of 2030-31 on the current position.

Estimates. Every derived figure in the synthesis is labelled as an estimate or model, with its formula, inputs and limitations stated. Estimates are never presented as official statistics.

Last updated. July 2026. Figures are subject to change at future fiscal events.

Source quality ranking

Source	Used for	Tier
HMRC, Inheritance Tax liabilities statistics (30 Jul 2026)	Estates, share of deaths, effective rates, size, age, gender, region, reliefs	Tier 1 (official statistics)
OBR, Economic and Fiscal Outlook (Nov 2025)	Receipts forecast to 2030-31	Tier 1 (official forecast)
gov.uk / HM Treasury policy papers	Thresholds, rates, relief reform parameters	Tier 1 (government)
HM Land Registry, UK House Price Index	England average house price context	Tier 1 (official statistics)
ONS, Deaths	Regional death shares for the concentration index	Tier 1 (official statistics)
Institute for Fiscal Studies, Reforming inheritance tax (2023)	Taxed-share projection and relief-concentration analysis	Tier 1 (academic / institutional)

No Tier 2 or Tier 3 sources are relied upon for any headline figure in this briefing. Secondary reporting was used only to locate primary releases, which were then cited directly.

For journalists and researchers

Most quotable statistics

"Fewer than 5 in 100 UK deaths result in an inheritance tax bill: 4.72% in 2023-24." (HMRC, 2026)
"Estates of people aged 75 and over pay 83% of all UK inheritance tax." (HMRC, 2026)
"The average taxpaying estate pays an effective rate of 13%, not 40%." (HMRC, 2026)
"Estates over £10 million pay a lower effective rate, 18%, than estates worth £2m to £7.5m, at 25%." (HMRC, 2026)
"London and the South East pay 46% of all UK inheritance tax." (HMRC, 2026)
"The spouse and civil partner exemption removed £6.8 billion from charge in a single year." (HMRC, 2026)
"The 220 estates worth over £10 million paid £4.72 million each on average." (HMRC, 2026)

Data limitations

Liabilities (accrued to the year of death) and receipts (cash collected) are distinct series and are not directly comparable line to line.
Average effective rates by band are means and conceal wide within-band spreads; the over-£10m band is small and volatile.
Region reflects the deceased's residence and is rounded by HMRC; the South East average bill shown is derived, not published.
The second-death and gender-count readings are inferences from the age, exemption and estate-value data, not figures HMRC states directly.
The IFS 7% projection (2023) predates the Autumn Budget 2025 freeze extension and the pension and relief reforms.

Recommended dataset fields

For a downloadable companion dataset: tax_year; geography (UK, region); taxpaying_estates_count; share_of_deaths_pct; total_liability_gbp; average_effective_rate_pct; estate_value_band; estates_in_band; avg_tax_in_band_gbp; age_band; liability_by_age_gbp; sex_of_deceased; liability_by_sex_gbp; exemption_or_relief_type; value_removed_gbp; estates_using; source_name; source_url; release_date; figure_type (outturn, forecast, estimate).

Press summary (about 150 words)

Inheritance tax in the UK is paid by a narrow group. In 2023-24, 30,400 estates were taxed, just 4.72% of the 644,000 deaths, the highest share since 2006-07 (HMRC, July 2026). The payers are old, asset-rich and southern: estates of people aged 75 and over paid 83% of the £7.03 billion total, and London and the South East paid 46%. The average effective rate was 13%, not the 40% headline, and it does not rise all the way up the scale. It peaks at 25% for estates worth £2m to £7.5m, then falls to 18% for estates over £10 million, because business and agricultural reliefs cluster at the top. The spouse exemption removed £6.8 billion from charge across 5,560 estates, so much of the tax lands on the second death. The Institute for Fiscal Studies projects the taxed share reaching around 7% by 2032-33.

Five suggested headlines

Who Actually Pays Inheritance Tax? Fewer Than 5 in 100 Estates
The Reliefs Cliff: Why the Biggest Estates Pay a Lower Rate Than the Merely Rich
83% of Inheritance Tax Is Paid by the Estates of People Over 75
A Southern Tax: London and the South East Pay 46% of the Inheritance Tax Bill
40% on Paper, 13% in Practice: The Real Inheritance Tax Rate

Frequently asked questions

How many people actually pay inheritance tax in the UK?

In the tax year 2023 to 2024, 30,400 estates created an inheritance tax charge, which was 4.72% of the 644,000 UK deaths that year (HMRC, 30 July 2026, UK). More than 95% of deaths resulted in no inheritance tax at all, though the taxed share is the highest since 2006-07 and is edging up.

Who pays the most inheritance tax by age?

Estates of people who died aged 85 or over paid £3.97 billion in 2023-24, 56% of the total, and those aged 75 to 84 paid a further £1.87 billion, 27% (HMRC, 30 July 2026, UK). Estates of people aged 75 and over therefore paid 83% of all inheritance tax that year.

Do the largest estates pay the highest rate?

Not in effective terms. The average effective rate rose to 25% for estates worth £2 million to £7.5 million, then fell to 18% for estates over £10 million in 2023-24 (HMRC, 30 July 2026, UK). Business and agricultural reliefs, concentrated in the largest estates, pull the top rate below that of mid-sized estates, though the biggest estates still pay the most in cash.

What is the real, effective inheritance tax rate?

The headline rate is 40%, but the average effective rate across taxpaying estates was 13% in 2023-24 (HMRC, 30 July 2026, UK). The gap reflects the nil-rate bands, the spouse and civil partner exemption, charity relief, and business and agricultural reliefs, which reduce the taxable estate.

Which parts of the UK pay the most inheritance tax?

London and the South East together accounted for 46% of all UK inheritance tax charged in 2023-24, from 11,120 taxpaying estates, and 55% of England's total (HMRC, 30 July 2026, UK). The South East had the most taxpaying estates, 6,310, and London the highest average bills, at £297,000.

Do men or women pay more inheritance tax?

The split is almost even. Taxpaying male-owned estates had a liability of £3.53 billion and female-owned estates £3.49 billion in 2023-24 (HMRC, 30 July 2026, UK). Female-owned estates were smaller on average, at £1.2 million against £1.4 million, so a near-equal total implies more taxpaying female-owned estates.

Why do so few estates pay inheritance tax?

Allowances, exemptions and reliefs keep most estates out of charge. The spouse and civil partner exemption alone removed £6.8 billion across 5,560 estates in 2023-24, and charitable gifts a further £1.94 billion across 10,400 estates (HMRC, 30 July 2026, UK). Most estates also fall below the £325,000 nil-rate band, unchanged since April 2009.

How much does the average taxpaying estate pay?

It varies sharply with size. Estates worth £300,000 to £400,000 paid about £13,800 on average, those worth £1 million to £1.5 million about £151,000, and the 220 estates over £10 million paid £4.72 million each on average in 2023-24 (HMRC, 30 July 2026, UK).

Is the number paying inheritance tax rising?

The taxed share of deaths is rising even though the number of taxpaying estates fell slightly, from 31,500 in 2022-23 to 30,400 in 2023-24, as total deaths fell faster (HMRC, 30 July 2026, UK). The Institute for Fiscal Studies projected the taxed share reaching around 7% by 2032-33 under frozen thresholds (IFS, September 2023, UK).

How are business and farm estates treated from 2026?

From 6 April 2026, agricultural and business property relief gives 100% relief on the first £2,500,000 of combined qualifying assets per person and 50% above, and the allowance is transferable between spouses and civil partners up to £5,000,000 per couple (gov.uk, 23 December 2025, UK). This replaced an earlier £1,000,000 allowance.

Who Actually Pays Inheritance Tax in the UK