3 days ago
Glasgow faces higher inheritance tax bills in coming years
A report by Wright, Johnston & Mackenzie and Irwin Mitchell predicts a 29% increase in liable estates, growing from 210 in 2015/16 to approximately 270 by the end of 2026/27.
The city's IHT liability is forecast to more than double, from £32 million to £69 million.
Roddy Harrison, a private client partner at Wright, Johnston & Mackenzie in Edinburgh (Image: Supplied) The average IHT bill per estate in Glasgow could reach £253,000, which is above the Scottish average of £211,000.
The report's findings are based on a Freedom of Information request to HMRC, forming part of a broader analysis covering 177,000 estates across 121 UK postcode areas.
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Across the whole of Scotland, the total number of IHT-liable estates is projected to reach 1,800 by the end of 2026/27, with a combined tax liability of £389 million.
Roddy Harrison, a private client partner at Wright, Johnston & Mackenzie in Edinburgh, said: "These figures show that families in Edinburgh and Glasgow are increasingly being drawn into the inheritance tax net.
"With liabilities rising sharply and average bills now well above the Scottish average, it's vital that individuals seek tailored advice.
"At Wright, Johnston & Mackenzie, we're helping more clients navigate these changes and protect their estates for future generations."
From April 6, 2026, significant reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) will take effect.
Full 100% relief will be capped at £1 million for combined qualifying assets, with amounts above this threshold receiving only 50 per cent relief.
AIM-listed shares will also see reduced BPR eligibility.
The Office for Budget Responsibility estimates that 130 estates will be impacted by APR changes and 1,440 by BPR, generating an additional £200 million in tax revenue in 2026/27.
The analysis reflects a broader trend throughout Scotland, where rising property values and frozen thresholds are pushing more families into the IHT net.
