IHT hits more estates

Thousands of families hit by IHT for the first time

Thousands of families in the Midlands and the North of England are being dragged into paying inheritance tax for the first time. The number of tax-paying estates in the North-East of England soared by 27% between 2019-20 and 2020-21. The West Midlands recorded the second largest percentage growth in England, with 24% more families paying inheritance tax than the previous year. Spiralling house and asset prices, combined with the long freeze on tax allowances, mean that growing numbers of middle-class households must pay inheritance tax. The average bill paid by households in Yorkshire and the Humber fell by £28,000, indicating that families with smaller estates are increasingly caught by the tax, pulling the average bill down. Shaun Moore of Quilter warns that a greater number of less wealthy families are being stung for the first time.