Wealth Club has revealed that in this financial year, the average bill for a family hit by inheritance tax is now expected to be £266,444.

This will be a rise of 27% compared with the 2019-20 tax year. It means in the decade since the 2012-13 tax year, the average inheritance tax bill will have soared by 57%.

According to data from HMRC, British households paid £500 million in inheritance tax last month, an extra £10m compared to April 2021.

With the five-year freeze on inheritance tax allowances announced in the March 2021 Budget, IHT receipts are also forecast to reach an all-time high of £7.6 billion in 2026, with the number of estates liable for the tax set to double, The Daily Telegraph reports.

Alex Davies, founder of Wealth Club, said: “Inheritance tax really is the gift that keeps on giving, to the Treasury at least.”

Individuals in Britain have a tax-free inheritance allowance of £325,000. The value of an estate above this nil-rate band can be subject to a tax rate of up to 40%.