UK cities facing the biggest rise in IHT bills – is yours on the list?

The number of estates liable for inheritance tax is set to increase to more than 37,000 by 2027, according to new analysis, as a result of rule changes, rising property prices and frozen thresholds.

Map of UK with pins in it
UK cities facing the biggest rise in IHT bills – is yours on the list?
(Image credit: Getty Images)

More families are bracing for inheritance tax bills – often running into tens of thousands of pounds – with people in some parts of the country to be worse hit than others.

A new report has highlighted the UK’s inheritance tax hotspots, where the number of estates liable for the tax, as well as how much is due, are set to increase.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Swipe to scroll horizontally
UK cities with the biggest predicted increase in IHT bill

Location

Number of IHT estates 2015/16

Predicted number of IHT estates 2026/27

Percentage increase (estates)

IHT liability 2025/16

Predicted IHT liability 2026/27

Percentage increase (IHT liability)

Wolverhampton

69

143

107%

£8m

£38m

375%

Liverpool

117

177

51%

£15m

£43m

253%

Manchester

142

195

37%

£16m

£55m

250%

Bradford

69

173

150%

£9m

£30m

233%

Belfast

213

379

78%

£27m

£83m

207%

Sheffield

176

257

46%

£24m

£52m

200%

Southampton

336

656

95%

£59m

£176m

198%

Edinburgh

296

526

77%

£45m

£126m

180%

Bristol

392

596

52%

£55m

£134m

145%

Cardiff

207

262

26%

£25m

£61m

144%

Swipe to scroll horizontally
UK cities with the biggest predicted average IHT bill by 2027

Location

Predicted number of IHT estates 2026/27

Predicted IHT liability 2026/27

Average IHT bill per estate

Inner London

4,813

£1,637m

£340,120

Manchester

195

£55m

£282,051

Birmingham

458

£126m

£275,109

Glasgow

272

£69m

£253,676

Liverpool

177

£43m

£242,937

Edinburgh

526

£126m

£239,543

Bristol

596

£134m

£224,832

Leeds

318

£67m

£210,377

Sheffield

257

£52m

£202,334

Laura Miller

Laura Miller is an experienced financial and business journalist. Formerly on staff at the Daily Telegraph, her freelance work now appears in the money pages of all the national newspapers. She endeavours to make money issues easy to understand for everyone, and to do justice to the people who regularly trust her to tell their stories. She lives by the sea in Aberystwyth. You can find her tweeting @thatlaurawrites