Yes, when it comes to Inheritance Tax, recent data shows Altrincham ranks in the Top 10 nationally for the highest rates paid. This sees our community sitting alongside wealthy London neighbourhoods when it comes to inheritance tax bills. Find out more…

Let’s look at the data

Law firm Irwin Mitchell analysed and compiled the HMRC government inheritance tax returns data. Their research shows that while the capital dominates the Top 10 list of UK areas with the biggest inheritance tax bills, there were two areas outside of London featuring on the list. And Altrincham and Sale West was one of them.

As per the research, here are the top 10 locations for average Inheritance Tax paid per estate for the period 2022-23.

Area                                                     Average IHT Bill 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

Inheritance Tax Liabilities by Region

Some further analysis, which was done by NFU Mutual, shows the number of estates within different regions, subject to an Inheritance Tax bill for the 2022-23 tax year. Here you can see, the North West ranks fifth on the list as a region.

It’s also interesting that, while Altrincham & Sale West ranks in the top 10 for the average Inheritance Tax paid per estate, here we can see that the total amount paid in the North-west is nearly 50% less than fourth place East of England and over 77% less than the London region. It proves that the North West has consolidated regions with high-priced properties, which is leading to an increase in inheritance tax bills. Altrincham being one of them.

And projected figures for the next few years are already pointing to a greater number of estates being liable for inheritance tax across the different regions.

Inheritance tax and how it’s levied

As a reminder, inheritance tax is levied at a rate of 40% on estates worth more than £325,000. Estate owners can take advantage of the “main residence nil-rate band”. This increases the tax-free threshold by up to £175,000 to £500,000. This new band was introduced in 2017, and it exempts all or part of the family from inheritance tax provided the beneficiary is a child or grandchild. The Chancellor Rachel Reeves confirmed in the Autumn 2024 budget that these bands would be frozen until 2030.

It’s not only the wealthy who pay Inheritance Tax

For many people, inheritance tax is still viewed as a ‘rich man’s (or woman’s) tax’. But that’s not the case in today’s world. You don’t need to be an owner of a luxury mansion to incur inheritance tax charges. The reality is, you only need to have owned your home for the last twenty or thirty years to find yourself owing inheritance tax when the time comes.

And that’s what hitting a lot of Altrincham homeowners. The average house price in Altrincham over the last 12 months was £450,078, significantly more than the £325,000 tax-free threshold. This is dragging more average income earners into the inheritance tax trap.

Take a look at our previous article ‘Did you buy your Altrincham home 20 years ago’, where you will see a chart highlighting the change in house prices in the Altrincham region, over the last 20 years.

For those with homes which are detached and larger in size with more bedrooms, these prices have inflated even more. Below is a chart showing the average house prices in Altrincham, based on property type. As you can see, detached homes are coming in at an average of just below £840,000.

What can Altrincham residents do?

If you are concerned about the value of your estate, don’t panic. We highly recommend, if you haven’t already, to get in touch with a reputable local law firm to discuss your estate planning. An expert in Wills, Trusts and Probate can help you with everything from inheritance tax relief and exemptions to trusts and gift planning. And if you’re unsure how much your home is worth in today’s market, you can always get yourself a free, no-obligation valuation from an estate agent.

We are here to help you with your property matters, from assisting with sales to managing your rentals. Our trusted team has an excellent knowledge of the local Altrincham, Hale and Bowdon areas. For honest, impartial and realistic advice, contact us today – 0161 941 4445.