London and South East families pay almost half of UK inheritance tax – Mortgage Strategy

Families in London and the South East paid almost half of all UK inheritance tax (IHT) last year, according to analysis by TWM Solicitors.

HMRC figures published on 30 July show families in the two regions paid £3.3 billion in inheritance tax in the 2023/24 tax year.

That was 46% of the UK’s total inheritance tax bill of £7 billion. A year earlier, the regions paid £3 billion, or 44% of the UK total.

The data also shows inheritance tax is heavily concentrated in southern England. Eighteen of the 20 parliamentary constituencies with the highest IHT bills are in London, the South East or within commuting distance of the capital.

Kensington had the highest inheritance tax liability at £107 million. It was followed by Cities of London and Westminster (£97 million), Richmond Park (£84 million), Hampstead and Kilburn (£70 million), and Esher and Walton (£70 million).

TWM Solicitors says rising house prices and frozen tax thresholds are pulling more families into paying inheritance tax.

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.”

She said the government had done little to reduce the inheritance tax burden. She described the long-running freeze in the inheritance tax threshold as a “stealth tax”.

She also said planned limits on inheritance tax relief for agricultural and business property would increase tax bills for many families.

The number of estates worth more than £1 million also continued to rise.

There were 9,130 estates valued at more than £1 million in 2023/24. That was up slightly from 9,070 a year earlier and from 7,905 five years ago.

Those estates paid £1.18 billion in inheritance tax during the year.

The figures suggest more high-value estates are becoming liable for inheritance tax as asset values increase. The tax-free thresholds have remained frozen, meaning a growing number of families are paying inheritance tax even when the real value of their assets has changed little after inflation.

The HMRC inheritance tax statistics cover the 2023/24 tax year and were published on 30 July 2026.