UK inheritance statistics 2026: Key facts, data & trends
UK inheritance statistics 2026: Key facts, data & trends
- Steve Gauke
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Curious about how inheritances are passed down, who receives them and what percentage of estates pay Inheritance Tax?
We’ve rounded up all the latest facts and figures on inheritance and Inheritance Tax so you have all the information you need to know about how it works in the UK.
Table of Contents
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Key statistics
4.62% of UK deaths resulted in an Inheritance Tax charge, up 23% vs 2021–2022
Average amount inherited in the UK : £11,000 [ONS]
Average effective tax rate for inheritance: 13% [Gov.uk]
Percentage of estates paying Inheritance Tax: 4.62% [Gov.uk]
Number of estates paying Inheritance Tax: 31,500 [Gov.uk]
Total Inheritance Tax collected by HMRC 2022-2023: £6.70billion [Gov.uk]
Inheritance Tax threshold (nil-rate band): £325,000 (unchanged since 2009) [Gov.uk]
Average age of inheritance recipients: 55 to 64 years [IFS]
Areas with the highest number of Inheritance Tax paying estates: London & South East. [Gov.uk]
Average inheritance in the UK
Median average inheritance received in the UK: £11,000. [ONS]
Median gift or loan: £2,000 received in the UK [ONS]
4% of UK beneficiaries received an inheritance of £1,000+ [ONS]
6% of UK beneficiaries received a gift or loan of £500+ [ONS]
Gifts & loans are most commonly given to 25-34 year olds [ONS]
25-34 year old receiving a gift or loan of 500+: 11% [ONS]
Demographics of inheritance recipients in the UK
Age
| Age Group | Median Inheritance Value |
|---|---|
| 16-24 years | £4,000 |
| 25-34 years | £5,000 |
| 35-44 years | £8,000 – £10,000 |
| 45-54 years | £15,000 – £20,000 |
| 55-64 years | £33,000 |
| 65+ years | £20,000 |
Source: Office for National Statistics (ONS), Institute for Fiscal Studies (IFS)
Wealth
When the poorest income quintile in the UK receives an inheritance, it makes up 13% of their net wealth
When the poorest wealth quintile in the UK receives an inheritance, it adds up to 44% of their net wealth
Just 1% of the poorest wealth quintile in the UK received an inheritance of £1,000+
However, the stats are very different at the other end of the spectrum:
When the richest income or wealth quintile receives an inheritance, it makes up just 5% of their net wealth
7% of the richest wealth quintile received an inheritance of £1,000+
[ONS]
Source of inheritance
Median inheritance by source across all ages:
Median amount inherited from a grandparent: £5,000
Median amount inherited from a parent: £22,000
Median amount inherited from a spouse: £80,000 (highest)
Median amount inherited from an alternative relative or non-relative: £10,000
For those aged between 16-34, 67% inherited from a grandparent or great-grandparent.
[ONS]
Use of inheritances
Overall, 49% of UK beneficiaries saved or invested their inheritance.
7% of first-time buyers used inheritance for a deposit in 2015–2016
For UK beneficiaries aged 16-34:
44% saved or invested their inheritance
~33% spent at least some
5% paid off debts
For UK beneficiaries aged 35-54:
~33% spent at least some of their inheritance
12% paid off debts
For UK beneficiaries aged 55+:
53% saved or invested their inheritance
~25% spent at least some
8% paid off debts
[ONS]
Looking ahead
Predicted median inheritance for:
For those born in the 1980s (currently 35-45 years old), the predicted median inheritance is: £136,000
For those born in the 1970s (currently 45-55 years old), the predicted median inheritance is £107,000
For those born in the 1960s (currently 55-65 years old), the predicted median inheritance is: £66,000
For today’s 20-35-year-olds, it is predicted that they will inherit at an average median age of 61 years.
[ONS]
How many people pay Inheritance Tax?
Total number of Inheritance Tax payments received by HMRC 2022-2023: 31,500
Total Inheritance tax received 2022-2023: £6.70 billion.
4.62% of deaths across the UK are charged with Inheritance Tax.
See the chart below for how inheritance tax charges have changed over time.
Source: gov.uk
While this is an increase of 3,700 on the previous tax year, the fact that Inheritance Tax is charged on fewer than 1 in 20 estates across the UK has been a consistent figure since the 2007 to 2008 tax year.
What is the average Inheritance Tax paid?
Average tax bill per taxable estate 2022-2023: £212,000. This is a decrease of 1.4% (£3,000) from the 2021-2022 tax year.
Current IHT rate: 40%
Average effective tax rate (AETR) for taxpaying estates: 13% as a result of allowances, exemptions, and relief.
Number of estates using RNRB (residents’ nil rate band): 30,600
[gov.uk]
This difference in % of tax paid is a prime example of how knowing about all the allowances and exemptions available to you is key when you’re estate
planning and looking to reduce your inheritance tax bill.
As the net value of the estate massively impacts the size of the tax bill, it is also important to look at the size of the estate.
See the average tax bills laid out according to estate value in the table below.
| Net Estate Value Band | Average IHT Paid |
|---|---|
| £300,000 – £400,000 | £13,500 |
| £400,000 – £500,000 | £31,000 |
| £500,000 – £600,000 | £52,000 |
| £600,000 – £700,000 | £74,000 |
| £700,000 – £800,000 | £95,000 |
| £800,000 – £900,000 | £115,000 |
| £900,000 – £1,000,000 | £133,000 |
| £1,000,000 – £1,500,000 | £153,000 |
| £1,500,000 – £2,000,000 | £322,000 |
| £2,000,000 – £7,500,000 | £840,000 |
| £7,500,000 – £10,000,000 | £1,670,000 |
| Over £10,000,000 | £3,630,000 |
Source: gov.uk
Exemptions and reliefs
Spouse & civil partner exemption: When a spouse or civil partner dies, the estate is able to be passed to their partner entirely tax-free.
Value of the relief from estates transferred to surviving spouses or civil partners: £5.98bn (2022–2023). A decrease of -£9.52bn (-61%) vs 2021–2022
5,070 estates used the spouse & civil partner exemption (2022–2023)
Agricultural & business property relief
Total value of relief from a combination of APR + BPR: £5.28bn (2022–2023). An increase of +£0.86bn (+19%) vs 2021–2022
Business property relief (BPR):
Total value of relief from business property relief: £3.34bn. An increase of +£0.49bn (17%) vs 2021–2022
Number of taxpaying estates using BPR: 3,840
Median BPR claimed per taxpaying estate: £207,000
Agricultural property relief (APR):
Total value of relief from Agricultural property relief: £1.9bn. An increase of £370m (24%) vs 2021-2022
Total number of taxpaying estates claiming APR: 1,730
Median APR claimed per taxpaying estate: £505,000
Charities or registered clubs exemption
10,800 estates used the charities or registered clubs exemption
[gov.uk]
Who pays Inheritance Tax?
Age
In the UK, 75–84 year olds paid £1.78bn (27%) Inheritance Tax in 2022-2023
In the UK, people aged 85+ paid £3.70bn (55%) Inheritance Tax in 2022-2023
In the UK, those under 75 or of an unknown age paid £1.22bn (18%) Inheritance Tax in 2022-2023
Also, for those under 65, around two-fifths (~40%) of the estate value is their main UK residence
[gov.uk]
Gender
Male-owned estates contribute to £3.23bn of the total UK Inheritance Tax paid
Female-owned estates contribute to £3.47bn of the total UK Inheritance Tax paid. This is slightly more based on the life expectancy gap (UK, 2021–2023): females live 4 years longer on average, so are more likely to inherit estates from their partners.
[gov.uk]
Marital Status
For those who are widowed or a surviving civil partner, they contribute £3.76bn (56%) of the total UK Inheritance Tax paid
For the “Other” category (single/divorced/dissolved), they contribute £2.4bn (36%) of the total UK Inheritance Tax paid
For those married or in a civil partnership at death, they contribute £543m (8%) of the total UK Inheritance Tax paid
[gov.uk]
Regional breakdown (2022-2023)
London had 5,100 taxpaying estates (2022-2023)
Total amount of Inheritance Tax paid in London in 2022-2023: £1.53bn
The average London taxpayer was charged £300,000 in Inheritance Tax in 2022-2023
The South East had 6,650 taxpaying estates (2022-2023)
Total amount of Inheritance Tax paid in the South East in 2022-2023: £1.45bn
London + South East:
53% of England’s IHT liability concentrated in London and the South East
44% of total UK IHT charged comes from London + South East
[gov.uk]
Inheritance & Inheritance Tax: trends over time
Since 2000, the landscape of inheritance has changed dramatically. As people live longer, property values rise and family structures evolve, wealth is possessed and passed down in different ways.
Key influencers have been:
The impact of housing market growth
With property prices at such a high, it encourages wealth inequality, as those who inherit property have access to wealth faster than those who don’t. For those who have seen a big increase in the value of their property, they may find the net value of their estate has significantly increased, pushing them further above the tax-free threshold. It’s also worth noting that, if a large proportion of the estate sits in property, this would further delay wealth being passed down due to the estate value being tied up in assets until the date of death.
Policy shifts affecting inheritance
The following changes to UK policies are having a significant impact on the amount of Inheritance Tax paid by estates and therefore on estate planning.
2007: Transferable nil-rate band between spouses and civil partners. This policy allows many more estates to be passed on tax-free through combining couples and civil partners’ tax-free allowances.
2012-13: a lower Inheritance Tax rate of 36% for estates that donate more than 10% of their estate to charity.
2017-18: Additional nil-rate band for direct descendants. For estates with property, the introduction of this policy – with a threshold increase in 2021 – means that a child or grandchild is able to inherit £175,000 worth of a property, tax-free.
2024:
£1 million cap per person on agricultural or business assets. A cap was introduced on what was previously 100% tax-free, meaning
agricultural or business estates will face higher Inheritance Tax bills from April 2026.Pension pots are included in estate value and will be subject to an inheritance cap.
Beyond the numbers: What if you’re waiting on an inheritance?
While these figures provide useful context as to the status of inheritances in the UK, and current statistics surrounding Inheritance Tax payments,
every situation is unique.
At Provira, we know how draining it can be when you’re waiting on an inheritance. Even more so if you’re facing financial pressures.
That’s why we’re so proud to offer beneficiaries a simple solution to accessing their inheritance early, and being able to move forward with their
lives.
Our Inheritance Advance:
Grants you access to up to 50% of your inheritance in just a few days
Charges simple interest, not compound interest
Doesn’t require credit checks or collateral
Doesn’t ask for monthly repayments or early repayment fees.
And our supportive, compassionate team will guide you through the process
from start to finish.
For more information, reach out to our team today. We are here to help.
Sources
Demos: A new age of inheritance. What does it mean for the UK (2023)
https://demos.co.uk/research/a-new-age-of-inheritance-what-does-it-mean-for-the-uk/
Gov.uk: Inheritance Tax liabilities statistics: commentary (2025)
https://www.gov.uk/government/statistics/inheritance-tax-liabilities-statistics/inheritance-tax-liabilities-statistics-commentary#key-points
IFS: Who gives and receives substantial financial transfers in Britain?
(2023)
IFS: Inheritances and inequality within generations (2020)
https://ifs.org.uk/publications/inheritances-and-inequality-within-generations
Office for Budget Responsibility: Inheritance Tax (2025)
https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/inheritance-tax/
ONS: Intergenerational transfers: the distribution of inheritances, gifts
and loans, Great Britain: (2018)
Statista: Inheritance tax receipts in the United Kingdom from 2010/11 to
2024/25 (2025)
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