The number of families who paid inheritance tax has increased by 13% to 31,500 in the year to April 2023, the latest official figures show.

HM Revenue & Customs statistics show that the total inheritance tax bill increased by 12% or £0.7bn to £6.7bn in 2022/23.

The share of UK deaths resulting in IHT being charged was 4.62% – an increase of 13% or 3,700 on the previous tax year.

The Office for Budget Responsibility forecasts total IHT liabilities for 2024/25 to rise 11.6% on the previous year to £8.4bn, while receipts data shows HMRC has so far taken £8.2bn for that period. 

The OBR also forecasts that in the current 2025/26 tax year IHT will raise £9.1bn

Evelyn Partners head of estate planning Ian Dyall says: “This data really just confirms what we already know: that more families are incurring inheritance tax liabilities, and more assets in each estate are becoming subject to tax – even before the IHT measures announced at the last Budget take effect. 

“As asset prices, especially equities and property, continue to rise the frozen nil-rate bands offer less and less protection against IHT and families that take no steps to mitigate their liabilities will either get drawn into the scope of IHT or have the tax levied on a greater proportion of their assets.”

Just Group director Stephen Lowe says: “The proportion of deaths liable to Inheritance Tax continues to creep ever upwards feeding on the ongoing freeze to thresholds and rising asset values.

“Reforms announced at the Autumn Budget 2024 are expected to significantly accelerate both the number and proportion of deaths that trigger IHT charges.

“It is estimated that around one in 10 deaths (9.5%) will be subject to Inheritance Tax by the end of the decade (2029/30) as these fiscal reforms kick in and pull ever more people into the thresholds.

“The removal of the pensions exemption from IHT will be the biggest driver of this increase with the OBR projecting that, from April 2027, this change will bring 31,200 more estates into scope of IHT before the end of 2029/30.

“A good first step for anyone who thinks their estate may be subject to Inheritance Tax, is to get an up-to-date valuation.

“This should include a recent assessment of their property wealth and it will also now be important to consider how any pension wealth could be taxed upon death.”