New figures from HMRC reveal that Londoners pay the highest average inheritance tax bill in the UK, at £297,000. This is more than double the average paid in Northern Ireland, where the figure stands at £120,000.
South East Leads in Total Tax Raised
While Londoners face higher individual bills, the South East has the greatest number of estates paying inheritance tax, with 6,310 estates contributing a total of £1.83 billion in the tax year ending April 2024. This is more than any other UK region, including London, where 4,810 estates paid £1.43 billion — £400 million less than the South East.
Overall, the South East and London together accounted for 46% (£3.26 billion) of the £7.03 billion paid across the UK.
Expert Comments on Growing Impact
Sean McCann, chartered financial planner at NFU Mutual, which analysed the figures, told Sky News: "Inheritance tax is impacting a growing number of families, as property and asset values continue to rise."
He added: "The main £325,000 tax-free allowance and the additional £175,000 allowance that allows you to pass a share of the family home to children or grandchildren remain frozen until 2031. The decision to bring pensions into the inheritance tax net from April 2027 will only accelerate the number of families impacted."
Regional Breakdown
In total, 30,400 estates across the UK paid inheritance tax during the period. Northern Ireland had the fewest estates (352), paying £61 million, with an average bill of £120,000. Wales saw 982 estates pay £154 million, averaging £157,000. Scotland had 1,620 estates paying £370 million, averaging £228,000.
The North East of England paid the least, with 533 estates contributing £94 million, an average of £176,000 per taxpayer.
