Shrouded Levies Reemerge, Pushing Inheritance Bills to New Heights

Inheritance Tax 101: The Money‑Mouth That Keeps Growing

Picture this: Your grandparents just handed you a golden watch, a tiny island, and a pile of old money. Suddenly the government pops up with a tax bill that looks like an eye‑watering spa package. And it’s not just a handful of ultra‑rich families—thanks to frozen thresholds and pandemic savings, even the “average” folks are in the line.

What the Numbers Really Say

Average IHT bill in 2021/22 was £215,000 – up a nick from £214,000 the year before.
Number of estates paying IHT jumped to 27,800 (a rise from 27,000).
Only about 4.4 % of every death triggers an IHT charge (up from 3.7 %).

And the Wealth Club thinks this trend will keep climbing like a rogue roller coaster.

Future Forecast in a Nutshell

Average bill for 2024/25: £248,000.
Estates that will pay: 30,300 (15.3 % more).
Proportion of deaths with a tax bill: 6.5 % (a jump of 6.5 % over the year).
Projected decade‑end average (if rules stay the same): around £290,000.

Hold up—how did we get to this “hey, it’s still one of the richest people’s taxes” we hear? That stems normal, because

When one spouse hands over assets to the other, they dodge the tax; but when the second partner dies, that hidden stash finally gets hip‑hip‑hurray tax.

So the real hit rate is probably 1 in 14 families—not 1 in 24.

The Tug‑of‑War Behind the Tax

IHT is the one big tax that the government hasn’t sworn off. Politicians only touch it because it’s more like a secret handshake than a headline. But… you don’t need to change the law to make more people pay. Let those frozen tax bands do their dirty work. The result? More families get the IHT wrap, and those already paying sooner or later see their bill climb—without a single political headline.

In short, it’s a stealth tax that silently gobbles up the wealth of the households that keep getting bigger—whether through inflated property values or pandemic‑era savings.