05/08/2025
Did you know that London’s most prestigious boroughs are now topping the charts for inheritance tax paid in the UK?
According to the latest HMRC figures, eight of the areas with the highest inheritance tax (IHT) bills are right here in London’s leafiest and most sought-after neighborhoods. In just one year, an astonishing £673 million was paid by only 895 estates—leaving an average inheritance tax bill of £752,000 per family.
Even more striking, areas like Kensington, Chelsea & Fulham, and Finchley & Golder's Green accounted for a full quarter of all the inheritance tax paid in London last year. In these three upscale neighborhoods alone, nearly £364 million went to HMRC, with the average estate facing a massive £930,000 bill. These numbers show how rising property values and frozen IHT thresholds are impacting not just the ultra-wealthy, but also families who may not even consider themselves “rich.”
With more modest estates now being pushed into the inheritance tax bracket, this is an issue every family and homeowner in London—and across the UK—should be paying attention to. Planning early is more important than ever.
What does this mean for you and your loved ones?
---------------------------------------------------------
--If you own property in London, your estate may be at risk of a significant inheritance tax bill.
--Without the right strategies, a large portion of your legacy could end up with HMRC, rather than your family.
--There are steps you can take to mitigate inheritance tax and protect what you’ve worked so hard to build.
At Khoob Accountancy, we specialise in guiding families and business owners through the complexities of inheritance tax and estate planning. Our team is here to help you understand your risk, identify smart tax-saving strategies, and ensure your wishes are honored.
Don’t wait until it’s too late—secure your family’s future today.
👉 Visit our website to learn more or book your free, confidential consultation:
https://khoobaccountancy.co.uk
Have questions about inheritance tax? Drop them in the comments or send us a direct message. Let’s make sure your legacy is protected.