Families in London and the South East of England paid 46% of all UK inheritance tax bills in the last year – up from 44% the previous year, according to analysis of HMRC data.
Research carried out by TWM Solicitors, a private wealth and family law firm based in Surrey, found that 18 of the 20 top-paying areas for IHT were in London or the South East.
Overall in the UK, the number of estates worth more than £1m reached 9,130, growing steadily over the past five years, and these estates paid £1.2bn in IHT during the last tax year.
TWM analysis using data published this week by HMRC found that the value of IHT bills for London and the South East was £3.3bn in the last year, up from £3 billion the previous year. Total UK IHT liabilities were £7bn.
Laura Walkey, partner and head of private client at TWM Solicitors, said: “Families in London and the South East are particularly feeling the effect of a double whammy of higher inflation and frozen IHT thresholds. This means they are paying more IHT for the same assets over time.”
“The Government so far hasn’t taken any meaningful action to alleviate the IHT burden on families in London and the South East.”
“The threshold over which IHT is paid has been frozen since 1981 and by keeping it frozen the Government is hiding a tax increase and charging families a ‘stealth tax’. The cap of the relief that families can receive when passing their agricultural and business property is going to mean the IHT bills will keep increasing, hitting these families even further.”
TWM says that the number of estates worth more than £1m reached 9,130, up from 9,070 the previous year and 7,905 five years earlier.
London and the South East regions paid most IHT
|
Region |
IHT paid in tax year 2023/24 |
IHT paid in tax year 2022/23 |
|
South East |
1,830 |
1,530 |
|
London |
1,430 |
1,450 |
|
South West |
697 |
706 |
|
East of England |
639 |
672 |
|
Scotland |
370 |
356 |
|
West Midlands |
350 |
347 |
|
North West |
341 |
331 |
|
Yorkshire and the Humber |
291 |
249 |
|
East Midlands |
270 |
237 |
|
Wales |
154 |
155 |
|
North East |
94 |
87 |
|
Northern Ireland |
61 |
40 |
|
|
|
|
|
Total IHT liabilities |
7,030 |
6,700 |
Source: TWM Solicitors / HMRC data
18 of 20 top paying constituencies are in London and the South East
|
Region |
Parliamentary Constituency |
IHT paid in tax year 2023/24 (£m) |
|
London |
Kensington |
107 |
|
London |
Cities of London and Westminster |
97 |
|
London |
Richmond Park |
84 |
|
London |
Hampstead and Kilburn |
70 |
|
South East |
Esher and Walton |
70 |
|
London |
Chelsea and Fulham |
61 |
|
London |
Wimbledon |
59 |
|
South East |
Mole Valley |
53 |
|
South East |
Chichester |
48 |
|
London |
Finchley and Golders Green |
46 |
|
South East |
Chesham and Amersham |
46 |
|
South East |
Beaconsfield |
43 |
|
Scotland |
Edinburgh South |
41 |
|
South East |
South West Surrey |
40 |
|
London |
Holborn and St Pancras |
39 |
|
South East |
Runnymede and Weybridge |
39 |
|
East of England |
South West Hertfordshire |
37 |
|
London |
Dulwich and West Norwood |
37 |
|
London |
Twickenham |
37 |
|
East of England |
Brentwood and Ongar |
36 |
Source: TWM Solicitors / HMRC data
The number of estates worth more than £1m reached 9,130
|
Tax year |
Number of estates worth more than £1m |
IHT paid by estates worth more than £1m (£m) |
|
2023/24 |
9,130 |
1,180 |
|
2022/23 |
9,070 |
1,210 |
|
2021/22 |
8,760 |
1,050 |
|
2020/21 |
7,440 |
1,020 |
|
2019/20 |
7,905 |
1,530 |
Source: TWM Solicitors / HMRC data
• HMRC Inheritance Tax liabilities statistics for tax years 2023/24, published on 30 July 2026.
TWM Solicitors is a large South East-based law firm.
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