Financial estates in London and the South East paid almost three times more inheritance tax (IHT) than Scotland, Wales and Northern Ireland combined across the same tax year, new regional HMRC has data shown.

London and the South East paid £2.98bn of the £6.7bn raised in the UK by IHT for the 2022/23 tax year, which was the latest data available.

Financial advisory firm, NFU Mutual, analysed the figures and noted that in London, 5,100 estates paid £1.53bn in IHT during 2022/23, with three of the capital’s wealthiest parliamentary constituencies paying over £100m. Topping this list was Kensington, where 112 estates paid £154m, followed by Chelsea and Fulham where 96 estates paid £107m in IHT, and 183 estates in Finchley and Golders Green that paid £103m.

By contrast, 1,030 estates in Wales paid £155m in IHT and 1,680 estates in Scotland paid £331m in the same tax year. The figures also showed that 334 Northern Ireland estates were liable for £40m of IHT.

“The average IHT bill now stands at £213,000,” chartered financial planner at NFU Mutual, Sean McCann, commented. “Although this is skewed by the wealthiest taxpayers, increases in property prices, and frozen tax-free allowances mean that a growing number of families are facing a liability.”

HMRC’s figures have shown that a total of 31,500 estates paid the levy in 2022/23 – a 13% rise on the previous tax year – and added that 4.62% of deaths had resulted in an IHT charge that year.

Annual IHT receipts over the last 20 years have increased from £3.3bn in 2005/06, to £8.2bn in 2024/25, according to the latest HMRC data.

McCann added: “IHT is impacting a growing number of families, as property and asset values continue to rise, the main £325,000 tax free allowance and £175,000 allowance that allows you to pass a share of the family home to children or grandchildren remain frozen until 2030.

“The proposal to bring pensions into the IHT net from April 2027 will only accelerate the number of families impacted.”

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