IHT Liabilities

In 2020-2021, Inheritance Tax liabilities soared by 16% (£800 million), reaching a record £5.76 billion, driven by pandemic effects and rising asset values. The UK also witnessed an 18% increase in deaths during this period.

IHT Charge

In 2020-2021, 3.73% of UK deaths incurred Inheritance Tax, slightly down from the previous year, with stability attributed to the Residence Nil-Rate Band introduction.

Average Effective Tax Rate

In the 2020-2021 tax year, the average effective tax rate for 27,000 taxpaying estates was 13%, influenced by estate size and tax-free allowances. Larger estates faced higher AETRs, reaching 25% for those between £2 million and £7.5 million.

Composition of Estate

Estates below £1 million are predominantly comprised of residential property and cash, while those exceeding this threshold tend to include more securities and diverse assets.

Chargeable Trusts & Value

The net chargeable value of taxable transfers into trusts remained stable at approximately £60 million, with a peak at £128 million in 2019-2020. Ten-year anniversary charges for trusts reached nearly £3.7 billion in 2017-2018 but have since declined.


Be visible when customers are nearby and show interest for locations like yours while they're searching or browsing.

Business Profile

Promote products and special offers available in your store.