Altrincham Joins London’s Elite in Inheritance Tax Rankings
Date: 18.08.2025
Focus Keyword: Inheritance Tax in Altrincham
Recent analysis from Irwin Mitchell Private Client Advisory has revealed that affluent Altrincham, located in North West England, has made its mark by entering the top 10 list for the highest average Inheritance Tax (IHT) paid per estate. This comprehensive report highlights stark contrasts between London’s expensive districts and other areas, showcasing Altrincham’s growing wealth.
London Dominates Inheritance Tax Rankings
The latest government statistics for the fiscal year 2022/23 underline London’s dominance in the IHT landscape. Kensington tops the chart, with estates facing an eye-watering average tax of £1,375,000. Other posh locations such as Chelsea & Fulham and Cities of London & Westminster also report average IHT payments exceeding £1 million.
Top 10 Areas for Average Inheritance Tax Paid Per Estate
- Kensington – £1,375,000
- Chelsea & Fulham – £1,114,583
- Cities of London & Westminster – £1,075,949
- Hampstead & Kilburn – £717,949
- Westminster North – £647,059
- Finchley & Golders Green – £562,842
- Wimbledon – £556,452
- Torridge & West Devon – £534,247
- Islington South & Finsbury – £468,085
- Altrincham & Sale West – £451,220
Notably, Altrincham & Sale West in Greater Manchester and Torridge & West Devon are the only regions outside London to break into this prestigious list, with IHT bills averaging £451,000 and £534,000 per estate respectively.
Expert Insights on Estate Planning
Importance of Proactive Planning
Andrea Jones, National Head of Irwin Mitchell’s Private Client Advisory team, emphasizes the necessity of proactive estate planning in high-value areas. “Our analysis underscores the importance of efficient estate management. With rising property values and complex asset portfolios, seeking professional advice is essential for families aiming to protect their legacies,” she noted.
This perspective follows Irwin Mitchell’s latest publication, the Inheritance Tax Revolution Report, which analyzes the evolving IHT landscape across the UK. The report projects a rise in taxable estates from 4% to 7% by 2028, with Greater London’s total IHT liability anticipated to surge by 54% to £2.6 billion annually.
Upcoming Reforms in Inheritance Tax
In a significant move, Chancellor Rachel Reeves announced sweeping reforms in the Autumn Budget of November 2024, targeting Inheritance Tax (IHT). These reforms will change key aspects including Business Property Relief (BPR) and Agricultural Property Relief (APR). Notable changes effective from 6 April 2026 include:
- BPR and APR capped at £1 million: Estates with business or agricultural holdings exceeding this amount will only benefit from 50% relief.
- Inclusion of unused pension funds: Starting from 6 April 2027, these funds will be subject to IHT.
Key Implications of the New Rules
Experts at Irwin Mitchell warn about the complications arising from these reforms. The blend of estate and pension beneficiaries may pose challenges for executors, who may need to utilize estate assets—like the family home—to cover tax liabilities. This shifting landscape complicates the role of personal representatives (PRs), tasked with determining and settling IHT dues on pension assets, even if they lack direct access to those funds.
Conclusion
As inheritance tax regulations continue to evolve, both affluent areas like Altrincham and traditional wealth hubs in London face new challenges. Individuals navigating these changes should consider consulting with estate planning professionals to safeguard their legacies and make informed financial decisions. The shifting landscape emphasizes a proactive approach to protect family wealth in an ever-evolving tax environment.
