HMRC collected £5.33bn from inheritance tax in the 2020/21 tax year, a rise from £5.12bn in 2019/20.

The standard tax-free allowance of £325,000 has not changed for over 12 years. In those 12 ears the amount of inheritance tax collected each year by HMRC has more than doubled.

An extra £175,000 tax-free allowance that can be used against the value of the deceased’s home was introduced with the residence nil-rate band in 2017. This band is only available to those with ‘direct descendants’.

According to the Land Registry, the average UK house price has increased 60.7% since April 2009.

Sean McCann, Chartered Financial Planner at NFU Mutual, believes the inheritance tax system is inherently unfair as those without children are being hit with larger inheritance tax bills.

He said: “Those without children miss out on the extra allowance and as a result have far less protection against inheritance tax than they did in 2009. The inherent unfairness in the rules means that those without children are being hit with larger bills.”

Mr McCann added that the latest Budget will lead to an even more unfair system.

He said: “In the March Budget, Chancellor Rishi Sunak confirmed he was freezing inheritance tax allowances for five years, which is expected to raise almost £1bn in extra tax. By 2026, the £325,000 tax free allowance will have remained at £325,000 for 17 years, meaning more and more people will be caught in the net.”