In this article we have analysed the data and highlighted several local towns and constituencies which feature in Britain’s top 10 rankings for IHT bills.
If you need assistance with your Inheritance Tax planning, we have an experienced tax team here at Rouse. Please contact us to discuss your circumstances and how we can help.
Local towns in top 10 by ‘volume of IHT bills’
In our local region, there are several towns featured in the top 10 regions for Inheritance Tax bills by volume.
Chesham and Amersham (which includes Gerrards Cross and the Chalfonts) saw 131 estates liable for IHT, totalling £35 million in Inheritance tax bills in 2021/2022, with an average IHT bill of £267,000.
Other local towns that featured in the top 10 included Ruislip, Northwood and Pinner.
Local towns in top 10 by ‘value of IHT bills’
In addition, Windsor and South West Hertfordshire (which includes Chorleywood, Kings Langley and Rickmansworth) feature in the top 10 regions for Inheritance Tax bills by value.
Windsor saw 78 estates liable for IHT, totalling £46 million in Inheritance tax bills in 2021/2022, with an average IHT bill of £589,700.
You can see the full top 10 lists for IHT bills by volume and value below.
IHT landscape could be set to tighten
The UK Government is set to collect £7.5bn from Inheritance Tax this year, marking a 25% increase in just three years. Furthermore, The Chancellor, Rachel Reeves is under pressure to find new ways to boost Government income in her upcoming Budget, with changes to IHT rumoured to be on the table.
How can you protect against IHT bills?
“Those looking at reducing their Estates for IHT purposes and making use of available IHT exemptions ahead of the upcoming budget on 30 October may benefit from reviewing their Inheritance Tax planning.”
“Areas you might consider include, the use of the IHT nil rate band, annual exemption, regular gifts out of excess income, gifts of business or agricultural property or potentially exempt transfers, as well as wider planning opportunities.”
“However, your planning should be based on what fits best for your personal circumstances, so it is always best to speak to an experienced IHT tax advisor to build a personalised plan of action.”
Rachael Bonner, Personal Tax Manager at Rouse
Contact us
If you would like to discuss your Inheritance Tax planning with an experienced tax advisor and find out how we can assist, please contact us.
The latest data released by HMRC reveals:
Tax receipts by volume 2021/22
| Rank | Parliamentary Constituency | Number | Amount (£ million) |
|---|---|---|---|
| 1 | Chichester | 153 | 47 |
| 2 | Esher and Walton | 150 | 45 |
| 3 | Finchley and Golders Green | 148 | 59 |
| 4 | Richmond Park | 145 | 55 |
| 5 | South West Surrey | 140 | 49 |
| 6 | Chesham and Amersham | 131 | 35 |
| 7 | Ruislip, Northwood and Pinner | 127 | 28 |
| 8 | Hampstead and Kilburn | 123 | 81 |
| 9 | Chipping Barnet | 121 | 27 |
| 10 | Hornsey and Wood Green | 121 | 33 |
Tax receipts by value 2021/22
| Rank | Parliamentary Constituency | Number | Amount (£ million) |
|---|---|---|---|
| 1 | Kensington | 92 | 103 |
| 2 | Hampstead and Kilburn | 123 | 81 |
| 3 | Chelsea and Fulham | 106 | 76 |
| 4 | South West Hertfordshire | 113 | 61 |
| 5 | Finchley and Golders Green | 148 | 59 |
| 6 | Richmond Park | 145 | 55 |
| 7 | Cities of London and Westminster | 77 | 51 |
| 8 | South West Surrey | 140 | 49 |
| 9 | Chichester | 153 | 47 |
| 10 | Windsor | 78 | 46 |
* Tables based on HMRC data from Inheritance Tax Returns published on 31 July 2024 (Source: https://www.gov.uk/government/statistics/inheritance-tax-liabilities-statistics) which relates to inheritance tax estates by region in the 2021/22 tax year.
Rachael draws on over a decade of experience in tax to provide personal tax services and advice to families, company directors, and owner-managed businesses.