Inheritance tax was a tax meant for just the wealthy, however, with thresholds frozen, and higher house prices, millions of middle-class people are being dragged into the net.

For many years, wealthier families in London and the South of England have paid the most inheritance tax following the death of a loved one.

However new data has shown that families in the Midlands and the North of England are now being dragged into paying inheritance tax for the first time.

There are areas around the UK where for the first time the number of estates breaching the inheritance tax allowance is soaring.

Households in the North-East of England that paid inheritance tax in 2019/2020 and 2020/2021 soared by 27 percent according to the latest Government data.

A Freedom of Information request submitted by wealth manager Quilter shows that the West Midlands recorded the second largest percentage growth in England, with 24 percent more families paying inheritance tax than they did in the previous year.

In Yorkshire and the Humber an extra 18 percent of estates paid inheritance tax.

However, the average bill paid by households in the area fell by £28,000 – an indication that families with smaller estates are increasingly caught by the tax, pulling the average bill down.

In 2020/2021, 27,000 households across the UK paid inheritance tax. The sum paid increased by £24,000 on average, analysis by Quilter of Revenue data finds.

In England, families paid £28,000 more than in the previous year, as rising house prices coupled with the frozen threshold forced many to hand over more than ever.

The largest growth was in the capital, where the average inheritance tax-paying estate handed over an extra £100,000, according to Quilter.

This is largely down to soaring house prices in London, where the average home rose in value from £496,000 in December 2020 to £537,000 in September this year.

Shaun Moore, of Quilter added: “With taxable estates in London now averaging £1.73 million, largely driven by property values, it’s clear that more and more families could find themselves liable for inheritance tax.”

Many households would not have paid any tax if the thresholds had increased in line with inflation. However, Chancellor Jeremy Hunt left the dreaded tax unchanged in his Autumn Budget.

In August, The Daily Mail warned that more than half a million families would be forced to pay inheritance tax in the next ten years.

The Office for Budget Responsibility estimates that by 2027-28 the Government will be making £8.4 billion a year from inheritance tax compared with the £5.76 billion made in 2020-21.

Mr Moore warned that one key factor in the unfair change is that a greater number of less wealthy families are being stung for the first time.

He said: “Inheritance tax was once viewed as a tax on wealthier individuals, but the reality is that the average UK property is less than £50,000 short of the standard nil-rate band.

“With the nil-rate band and residential nil-rate band frozen until 2028 and house prices still high, many more people could face paying an inheritance tax bill unexpectedly.”