Spending by function, as a percentage of total managed expenditure and in £ billion (2022–23 prices)

Inheritance tax explained

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.

Composition of estates by value, among those reported to HMRC, 2020–21

Distribution of estate values and average effective inheritance tax rate among taxpaying estates worth more than £300,000 and reported to HMRC, 2020–21

Inheritance tax reductions for gifts before death, 2023–24