Note: The share of estates reported to HMRC over £300,000 excludes estates that did not have to be reported to HMRC on death in 2020–21, which will include some estates worth more than £300,000 that have, for example, been passed entirely to the deceased’s spouse. All estates worth more than £1,000,000 had to be reported to HMRC on death in 2020–21, even if no tax was due, although these rules changed in December 2021. This threshold causes the tick up in the distribution at £1,000,000.
Source: HMRC Statistics, table 12.1a.
Inheritance tax is levied on wealth bequeathed at death, or given away shortly before death, above a threshold. Around 5% of all deaths attracted inheritance tax in 2022–23.