Where people pay the most inheritance tax by local authority
An analysis by law firm Kingsley Napley of HMRC inheritance tax data (just released for tax year 2021-22) shows the geographical dispersal of estates hit by inheritance tax bills. Kingsley Napley names the top ten regions and shows who shares the medals that no one wants to win.
Based on the latest HMRC statistics of inheritance tax paying estates, Kingsley Napley can reveal:
- Chichester takes the gold for the number of estates affected (153) and sees its departed residents’ estates paying one of the top ten largest amounts to HMRC in the country.
- Esher and Walton is awarded silver, by number of estates on which tax was due.
- Finchley and Golders Green claimed bronze.
However, by total amount of inheritance tax paid, unsurprisingly Kensington glistens by contributing £103m to the government’s coffers.
It appears that the estates of those who lived in Hampstead and Kilburn; Finchley and Golders Green; Richmond Park; South West Surrey and Chichester, were some of the biggest contributors to the country’s IHT tax take during 2021-22, both in value and volume of affected estates.
In contrast, in the previous tax year (2020-21), Esher and Walton won gold, by volume of estates on which IHT was payable (160), followed by Twickenham with silver and Finchley and Golders Green with bronze. Notably, Twickenham not only failed to make the podium but barely scraped into the top 25 in 2021/22.
Sophie Voelcker, Partner in the Private Client Practice at Kingsley Napley LLP, comments:
“Our latest ranking shows that house prices and the socio-economic demographics of a region are driving up the local IHT costs, so it is perhaps no surprise to see the South East take the medals.
“We are advising an increasing number of clients who are looking at reducing their estates for IHT purposes and making use of available IHT exemptions pre 30 October: namely 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. Otherwise they are advised to just spend!”
Tax Receipts By Volume 2021/22 (source HMRC):
|
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 |
Amount (£ million) |
Number |
|---|---|---|---|
|
1 |
Kensington |
103 |
92 |
|
2 |
Hampstead and Kilburn |
81 |
123 |
|
3 |
Chelsea and Fulham |
76 |
106 |
|
4 |
South West Hertfordshire |
61 |
113 |
|
5 |
Finchley and Golders Green |
59 |
148 |
|
6 |
Richmond Park |
55 |
145 |
|
7 |
Cities of London and Westminster |
51 |
77 |
|
8 |
South West Surrey |
49 |
140 |
|
9 |
Chichester |
47 |
153 |
|
10 |
Windsor |
46 |
78 |
Tax Receipts By Volume 2020/21:
|
Rank |
Parliamentary Constituency |
Number |
Amount (£ million) |
|---|---|---|---|
|
1 |
Esher and Walton |
160 |
50 |
|
2 |
Twickenham |
158 |
40 |
|
3 |
Finchley and Golders Green |
157 |
44 |
|
4 |
Richmond Park |
156 |
79 |
|
5 |
Chichester |
143 |
39 |
|
=6 |
South West Surrey |
136 |
37 |
|
=6 |
Mole Valley |
136 |
32 |
|
8 |
Hampstead and Kilburn |
129 |
74 |
|
9 |
Epsom and Ewell |
128 |
28 |
|
10 |
Reigate |
121 |
38 |
Tax Receipts By Value 2020/21:
|
Rank |
Parliamentary Constituency |
Amount (£ million) |
Number |
|---|---|---|---|
|
1 |
Kensington |
108 |
92 |
|
2 |
Cities of London and Westminster |
84 |
91 |
|
3 |
Richmond Park |
79 |
156 |
|
4 |
Chelsea and Fulham |
75 |
99 |
|
5 |
Hampstead and Kilburn |
74 |
129 |
|
6 |
Lewes |
53 |
114 |
|
7 |
Esher and Walton |
50 |
160 |
|
8 |
The Cotswolds |
49 |
100 |
|
9 |
Wimbledon |
46 |
120 |
|
=10 |
Finchley and Golders Green |
44 |
157 |
|
=10 |
East Surrey |
44 |
106 |
NOTES TO EDITORS
The Kingsley Napley Inheritance Tax Olympics ranking is 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 and 2020/21 tax years.
press and publications
- Britain’s death tax hot spots revealed as Government looks to raid inheritances - Express, August 2024
- Britain's death tax hot spots revealed as Government looks to raid inheritances - MSN, August 2024
- Inheritance tax burdens soar as property prices climb, new data shows - SurreyLive, August 2024
- Inheritance tax burdens soar as property prices climb, new data shows - MyLondon, August 2024
- Inheritance tax burdens soar as property prices climb, new data shows - Yahoo, August 2024
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