An analysis of HMRC data by wills and probate solicitors David W Harris & Co reveals the large differences in how much families pay in inheritance tax (IHT) across the UK.
Using figures for the 2023-24 tax year, the research ranks every UK region and nation by the average inheritance tax bill per estate. London estates pay the most, with an average of £297,300 per estate and 4,810 estates liable. In Wales the amount is almost half that, with 982 estates paying an average of £156,800. Scotland carries a higher average bill than every English region except London and the south east.
Property values likely account for much of the spread, David W Harris & Co points out, with years of house price growth across London and the south east lifting more estates over the IHT threshold. However, the firm says the averages can understate how widely the tax reaches. Across the UK, the typical estate paying IHT faces a bill of around £231,000, and the figure is unlikely to ease while the tax-free threshold stays frozen.
With the nil-rate band of £325,000 set to remain until 2030 more estates will be liable as house prices rise, with estates of families who would never describe themselves as wealthy pushed over the IHT threshold.
Tom Baker, partner at David W Harris & Co, said of the analysis: “We ran this research because inheritance tax is so often treated as a problem for other people, the very wealthy, or families in the capital, when in practice it reaches much more widely. We wanted to replace that assumption with a clear, region-by-region picture of who is actually affected.
“Wherever a family sits in these figures, the practical steps are the same. With the threshold fixed for years while property values rise, more estates are gradually being drawn in, so it is worth understanding where you stand rather than assuming the tax does not apply. A well-kept will and early advice remain the best way to avoid an unwelcome surprise.”
| Region | Average per estate | Estates liable | Total tax |
| London | £297,300 | 4,810 | £1,430m |
| South East | £290,000 | 6,310 | £1,830m |
| Scotland | £228,400 | 1,620 | £370m |
| South West | £202,000 | 3,450 | £697m |
| Yorkshire and the Humber | £195,300 | 1,490 | £291m |
| East of England | £193,600 | 3,300 | £639m |
| East Midlands | £188,800 | 1,430 | £270m |
| West Midlands | £188,200 | 1,860 | £350m |
| North East | £176,400 | 533 | £94m |
| Northern Ireland | £173,300 | 352 | £61m |
| North West | £163,900 | 2,080 | £341m |
| Wales | £156,800 | 982 | £154m |
Source: David W Harris & Co
