Law firm Kingsley Napley analysed HMRC inheritance tax data for the tax year 2022-23 and revealed that Finchley and Golders Green had the second-highest number of estates affected, with 183 subject to inheritance tax.
Richmond Park topped the list with 184 estates, and Esher and Walton came third with 156.
The analysis also revealed that the estates in Finchley and Golders Green – represented by Labour’s Sarah Sackman – were among the top contributors to the government’s inheritance tax revenue, paying a total of £103 million for the year.
Ranking third on the list, Finchley and Golders Green followed Kensington, which paid £154 million, and Chelsea and Fulham, with a contribution of £107 million.
The analysis revealed that the estates of those residing in Ruislip, Northwood, and Pinner were one of the major contributors to the country’s inheritance tax revenue in 2022-23, both in value and in the number of estates affected.
The area had 142 estates affected by inheritance tax, collectively contributing £46 million to the government’s coffers.
A total of 24,381 estates in the UK were subject to inheritance tax in the tax year 2022-23, 3,815 more than the previous year.
James Ward, head of the private client practice at Kingsley Napley, said: “As usual, London and South-East constituencies top our leaderboard, but the bigger picture is that over 15 per cent more estates across the country were dragged into the inheritance tax whirlpool for the year in question due to continued house price growth and the fact tax bands have been stuck since 2009.
“With house price growth slowing, however, this may no longer be the engine driving the inheritance tax take in future.
“In the near term, it may be the upcoming change to make pensions subject to inheritance tax from 2027 that will impact the rankings more markedly as estate assets are valued on a wider basis.
“The expectation is that this will add approximately 10,000 more estates to HMRC’s sights and increase estate values by an average of £34,000 when pension assets are included (Government figures).”
“That said, we are advising an increasing number of clients who are engaging in active estate planning given the Government’s tightening death tax grip.
“There remain various exemptions that can help with the reduction of estates for inheritance tax purposes, namely the use of the inheritance tax nil rate band, annual exemption, regular gifts out of excess income, gifts of business or agricultural property, or potentially exempt transfers.
“Inheritance tax remains one of the most unpopular taxes that people resent their families or beneficiaries paying, so it makes sense to take advantage of these before Rachel Reeves chokes off mitigation measures given the pressure she is under to find funds for the public purse.”
