Although the Burnham regime has floated the idea of an across-the-board 10% death tax on all estates, the existing IHT rules still apply, and it’s pretty much linked to main residence value for most UK citizens. Here’s some analysis;
Where a family lives can make a striking difference to the inheritance tax they leave behind. Figures newly published by HMRC on 30 July 2026 put the average bill in London at around £297,300, close to double what estates in Wales pay (£156,800), now the lowest of any UK nation or region.
New analysis by Wills and probate solicitors David W Harris & Co reveals just how unevenly inheritance tax is spread across the UK, highlighting how much geography shapes what families are left to pay.
Drawing on the newly released figures, for the 2023-24 tax year, the research ranks every UK region and nation by the average inheritance tax bill per estate. The pattern is a pronounced tilt towards the south: London and the South East between them account for 46% of all the inheritance tax collected across the UK.
The regions and nations rank as follows:
| Region | Average per estate | Estates liable | Total tax |
| London | £297,300 | 4,810 | £1,430m |
| South East | £290,000 | 6,310 | £1,830m |
| Scotland | £228,400 | 1,620 | £370m |
| South West | £202,000 | 3,450 | £697m |
| Yorkshire and the Humber | £195,300 | 1,490 | £291m |
| East of England | £193,600 | 3,300 | £639m |
| East Midlands | £188,800 | 1,430 | £270m |
| West Midlands | £188,200 | 1,860 | £350m |
| North East | £176,400 | 533 | £94m |
| Northern Ireland | £173,300 | 352 | £61m |
| North West | £163,900 | 2,080 | £341m |
| Wales | £156,800 | 982 | £154m |
London sits at the top, though the South East is now barely behind it, the two separated by around seven thousand pounds on average. Scotland is a notable third, carrying a higher average bill than every English region bar London and the South East, a reminder that the heaviest bills are not confined to the south east corner of England. At the foot of the table, Wales records the lowest average of all, and a typical Welsh estate pays roughly half what its London equivalent does.
Property values likely account for much of the spread. Years of house price growth across London and the South East have likely lifted more estates over the threshold where the tax begins, while lower average values across much of Wales, the North West and Northern Ireland keep them nearer the bottom.
The averages can understate how widely the tax reaches, though. Across the UK, the typical estate caught by it faces a bill of around £231,000, and that figure looks unlikely to ease while the tax-free threshold stays frozen.
The nil-rate band, the point at which an estate starts to attract inheritance tax, has held at £325,000 since 2009 and is set to remain there until 2030. The longer it stays fixed as prices and savings rise, the more estates are quietly drawn in, many belonging to families who would never describe themselves as wealthy.
Tom Baker, Partner at David W Harris & Co, said: “We ran this research because inheritance tax is so often treated as a problem for other people, the very wealthy, or families in the capital, when in practice it reaches much more widely. We wanted to replace that assumption with a clear, region-by-region picture of who is actually affected.
“Wherever a family sits in these figures, the practical steps are the same. With the threshold fixed for years while property values rise, more estates are gradually being drawn in, so it is worth understanding where you stand rather than assuming the tax does not apply. A well-kept will and early advice remain the best way to avoid an unwelcome surprise.”
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