What is the inheritance tax threshold, and how many estates pay it?
Inheritance tax is usually charged at 40% on the part of an estate above £325,000, according to GOV.UK. The threshold can rise to £500,000 when a home is left to children or grandchildren, and unused thresholds can pass to a surviving spouse or civil partner. Everything left to a spouse, civil partner or charity is exempt.
HMRC's statistics, published 30 July 2026, show that 4.72% of UK deaths in 2023-24 led to an inheritance tax charge, about 30,400 estates, the highest share since 2006-07. Liabilities for that year were £7.03 billion, and the average effective rate paid by taxpaying estates was 13%.
The OBR notes the November 2025 Budget extended the freeze on the tax-free allowances. Monthly cash receipts are in HMRC's tax receipts statistics and differ from liabilities because of payment timing.
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