The number of estates in the UK subject to inheritance tax is set to soar by 50% to over 37,000 by 2027, a new report from Irwin Mitchell has revealed.
The report suggested that this will result in a total bill of almost £9 billion by 2026/27, rising from £5.5 billion in 2021/22.
The predictions are based on previously unseen Government statistics which cover 177,000 IHT estates across all UK postcodes.
The forecasts have been adjusted to account for changes announced in last year’s Budget, which saw the threshold freeze extended until 2030 and changes to Business and Agricultural Property Relief from April 2026.
Irwin Mitchell said nine out of 10 UK postcodes will have more estates liable for IHT in 2026/27 compared to 2021/22, and ten UK postcodes will see the number of IHT liable estates double between 2021/22 and 2026/27.
The total amount of IHT in Greater London is predicted to grow by 54% between 2022 and 2027, increasing to £2.6 billion a year.
Andrea Jones, national head of Irwin Mitchell Private Client Advisory team, said: “The increase in inheritance tax liabilities across the UK is a significant concern for many families. Our findings highlight the urgent need for individuals to seek professional advice to navigate these changes and plan effectively for the future.
“With the threshold freeze extended until 2030 and changes to Business and Agricultural Property Relief from April 2026, it’s more important than ever to understand the implications and take proactive steps to mitigate the impact on estates.”
