Average inheritance tax bill set to hit £266,000 in 2022

Average inheritance tax bill set to hit £266,000 in 2022

The average inheritance tax bill will rise to £266,000 this year, as surging inflation tips more homeowners over the threshold, according to new analysis by investment service Wealth Club.

Wealth Club has revealed that in this financial year, the average bill for a family hit by inheritance tax is now expected to be £266,444.

This will be a rise of 27% compared with the 2019-20 tax year. It means in the decade since the 2012-13 tax year, the average inheritance tax bill will have soared by 57%.

According to data from HMRC, British households paid £500 million in inheritance tax last month, an extra £10m compared to April 2021.



With the five-year freeze on inheritance tax allowances announced in the March 2021 Budget, IHT receipts are also forecast to reach an all-time high of £7.6 billion in 2026, with the number of estates liable for the tax set to double, The Daily Telegraph reports.

Alex Davies, founder of Wealth Club, said: “Inheritance tax really is the gift that keeps on giving, to the Treasury at least.”

Individuals in Britain have a tax-free inheritance allowance of £325,000. The value of an estate above this nil-rate band can be subject to a tax rate of up to 40%.

Share icon
Share this article: