Number of estates subjected to inheritance tax increases by 13 per cent in one year

For immediate release

The number of estates subjected to inheritance tax has increased by over 10 per cent in just one year, according to analysis by the TaxPayers’ Alliance of official government statistics.

In 2021-22, 27,800 estates were subject to inheritance tax. This increased by 13 per cent in 2022-23 to 31,500. These figures relate to a period before the reduction in business property relief and agricultural property relief and also before changes that mean that pension pots will now be subjected to inheritance tax.

In 2022-23, the effective tax rate levied on estates was 13 per cent on average, meaning a tax bill of £212,000 for the average estate. Almost half, 45 per cent of the liability for inheritance tax was in London and the South East, followed by 11 per cent for the South West. 

The TaxPayers’ Alliance is campaigning to scrap inheritance tax.

John O’Connell, chief executive of the TaxPayers' Alliance, said:

"Frozen inheritance tax thresholds and rising house prices are dragging more and more grieving families into paying the hated death duty

“Yet in the ultimate sign that the government views wealth and affluence with contempt and envy, the only changes they have made have been to hammer family businesses and farms.

“Whoever makes up the next government should scrap inheritance tax in its entirety.”

TPA spokespeople are available for live and pre-recorded broadcast interviews via 07795 084 113 (no texts)

Media contact:

Elliot Keck
Head of Campaigns, TaxPayers' Alliance
[email protected]
24-hour media hotline: 07795 084 113 (no texts)

Notes to editors:

1. Founded in 2004 by Matthew Elliott and Andrew Allum, the TaxPayers' Alliance (TPA) campaigns to reform taxes and public services, cut waste and speak up for British taxpayers. Find out more at www.taxpayersalliance.com.
   
   
2. TaxPayers' Alliance's research council.
   
   
3. The government statistics can be found here.
   
   
4. More information about the TPA’s campaign to scrap inheritance tax can be found here.