How Likely Are You To Need To Pay Inheritance Tax?

Ravi Solanki • September 30, 2026

Often when inheritance tax is mentioned in the news, the government’s statistics that less than five per cent of estates pay inheritance tax are rolled out. However, rather than looking at historical data, the picture becomes much more interesting if you look to the future.

This is what Tax Policy Associates have done. Through their research, they estimate that by April 2027, one-fifth of the UK’s pensioner households will have sufficient assets that they would be liable to pay inheritance tax should both they and any spouse pass away.

It’s important to note that this doesn’t mean 20 per cent of pensioner households will be liable for inheritance tax in 2027. However, it does highlight that inheritance tax is not only a factor to think about if you are very wealthy.

Perhaps unsurprisingly, when you look at where people are most likely to live if they are exposed to an inheritance tax liability, those in constituencies around London are at the top of the list.

In Wimbledon, for instance, 52 per cent of pensioner households could be in line to pay the tax. Meanwhile, in Richmond Park it is 50.9 per cent of pensioner households.

Compared to Essex and the surrounding areas, you’ll find that the percentage is lower but still significant. For instance, in Romford 24.3 per cent of pensioner households are exposed, while in Harwich and North Essex, it’s slightly lower at 21.3 per cent.

In the constituency of North West Essex, exposure for pensioner households is quite a bit higher at 27.5 per cent, while in the Leyton and Wanstead constituency it’s higher still at 32.3 per cent.

This data highlights how important it is to consider your potential inheritance tax liability well in advance, because you could be more exposed than you think.

While house price rises have contributed to more pensioner households being dragged into the net for inheritance tax, this is not the only factor that plays a part.

The research revealed that only 40 per cent of households that are exposed to inheritance tax are in this position solely because of property price gains. This means other forms of wealth, such as savings and investments, are also likely contributing to your potential liability.

What should I do if I’m concerned about inheritance tax?

First and foremost, it’s important not to panic if you are worried your estate may be liable for inheritance tax. There are steps you can take to mitigate your exposure. Therefore the best course of action is to reach out to an expert to help you with inheritance tax planning in Essex.

My door is always open if you would like to arrange a Clarity Call to discuss your situation and find out how I can support you and your family.

Inheritance tax can feel complicated to understand, which is why seeking professional expert advice is sensible. Proper planning can not only mean that you reduce your inheritance tax liability, but also give you peace of mind that your estate is in order.

What is the minimum threshold for paying inheritance tax?

At the time of writing, your estate will be liable for inheritance tax if it is valued at over £325,000. The reason more households risk becoming liable for inheritance tax is, partly, because property values have increased significantly in the UK in recent decades.

That said, there are immediate exceptions in some circumstances if your estate is valued above this amount. This includes leaving all your assets above the £325,000 threshold to your spouse or civil partner, or to a charity or community sports club.

You can also increase the threshold at which this tax is payable by giving your home to your children or grandchildren. Doing so means you won’t have to pay inheritance tax unless your estate is valued at £500,000 or more.

These are only a few of the measures you can take to plan for inheritance tax. Working out which is best for you and your family is part of the process of working with an experienced estate planner.

So, instead of leaving inheritance tax to chance, make sure you get in touch or seek advice to give both you and your loved ones peace of mind.

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3 Reasons To Get Support With Your Estate Plan

By Ravi Solanki • September 7, 2026

Discover three of the top reasons to seek professional support with your estate plan and learn how working with an estate planner can improve your situation.

When Should You Start Estate Planning?

By Ravi Solanki • August 28, 2026

Too many people in the UK still shy away from estate planning, as evidenced by research indicating that 56 per cent of adults in the country do not have a will in place. This only falls slightly, to 53 per cent, for those aged 50 to 64, indicating that many people are sticking their heads in the sand when it comes to what will happen to their assets when they pass away. But, of course, a will is only one element of an estate plan. There are many approaches you can use to help protect the wealth you have accumulated throughout your lifetime to pass on to your family and ensure they continue to reap the benefits of what you’ve sown. When should you start estate planning? The reality is that the sooner you start estate planning, the better. This is because an estate plan is not an activity you do once and then ignore. It is a living, breathing plan that can adapt as your life changes. Many people wait until their later years before they start thinking about what will happen to their wealth once they pass away. While it is certainly better to engage with estate planning services in your 60s than not to do so at all, it is even more helpful if you start at a younger age. One of the reasons for starting earlier is that you can make your wishes clear and ensure you have a plan in place before there could be questions over your mental capacity. It is a confronting fact, but the number of people with dementia in the UK is expected to rise to 1.4 million by 2040 , which means if you leave this process too late you may not be in a position to take control of your estate planning yourself. I share this not to scare you, but to highlight a genuine risk that many people overlook. What are the benefits of early estate planning? There are many advantages to starting your estate planning as soon as possible, chief among them that it gives you control over your future. Estate planning is an overwhelmingly empowering process and I see my clients go from feeling nervous at the prospect to feeling both relieved and in more control of their finances once they have created an estate plan with me. Other benefits of estate planning include: Being in a position to adapt your approach to new legislation around taxation. Being able to maximise the money you give tax-free to your family and loved ones. Reducing your inheritance tax bill by making smart financial choices. Maximising the amount you can give to members of your family and loved ones as tax-free gifts can be an important part of an estate plan. Under current rules, when you give someone money, that sum becomes exempt from inheritance tax provided you survive for at least seven years after making the gift. Of course, there are more complex rules surrounding this process than merely surviving seven years, and there are annual limits on how much of your wealth you can give away and in what form. This is why working with an experienced estate planner is so important. I’m here to talk you through your estate planning options at any time, simply book a Clarity Call to get started.