The areas that pay the most IHT bills in the UK are ranked by inheritance tax.
THE AREAS OF THE UNITED KINGDOM THAT PAY THE MOST IN ESTATE TAX (IHT) HAVE BEEN DETERMINED.
According to Kingsley Napley’s analysis of HMRC data, there is a clear disparity between how much inheritance tax certain areas across the country pay. In terms of the volume of estates hit by large inheritance tax bills, Barnet topped the list, with an average bill of over £291,000.
Wiltshire and the City of Edinburgh came in second and third, with average bills of £229,000 and £212,000, respectively.
Residents of Kensington and Chelesa faced staggering bills when it came to the average value of IHT paid on each estate.
In comparison, the average estate tax bill in Kensington was around £1 million, while the average IHT levy in Walsall was around £65,000.
Stratford-upon-Avon, Winchester, Devon, and Dorset were discovered to have astronomical inheritance tax bills outside of London and the Home Counties.
Inheritance tax is levied on a deceased person’s estate, which includes their money, possessions, and property.
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If a person’s estate is worth less than £325,000, there is usually no IHT to pay.
Inheritance tax is currently levied at a standard rate of 40%.
Last year, the government announced that the £325,000 IHT nil-rate band and the £175,000 residence nil-rate band would be frozen until April 2026.
In order to generate more revenue for the Treasury, Chancellor Rishi Sunak has yet to make any further changes to inheritance tax rules.
James Ward, Kingsley Napley’s head of Private Client, outlined who is really targeted by inheritance tax in the UK.
“It isn’t just the richest families who pay the most Inheritance Tax,” Mr Ward explained.
“As our ranking demonstrates, some families are better than others at estate planning.
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“With recent increases in property and stock prices, as well as other tax increases, inheritance tax remains an area where something can be done to reduce the eventual liability due.”
As a result of rising inheritance tax bills, Kingsley Napley has seen an increase in the number of inquiries from people looking to reduce the amount of IHT that will be due.
There is, according to the financial expert.
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