· Inheritance tax ranked the UK’s most unfair levy, ahead of stamp duty and council tax
New research from Canada Life1 reveals that inheritance tax (IHT) tops the rankings amongst Brits as the UK’s most unfair tax.
When asked to rank the perceived fairness of the UK’s most common taxes, Britons placed inheritance tax firmly at the top of the ‘unfair’ list. More than half (54%) consider IHT an unfair levy, followed by stamp duty (43%) and council tax coming in close third (40%).
The findings may point to concern amongst an increasing number of middle-income families who are being pulled into the IHT net as a result of frozen thresholds, rising property prices, and forthcoming rule changes. HMRC collected a record £8.2bn in IHT receipts for the 2024/25 financial year2, with The Office for Budget Responsibility forecasting IHT to raise £9.1bn for the 2025/26 financial year3.
Amongst those who deem IHT unfair, the top three reasons cited were that it penalises people who have saved well and want to pass something on to loved ones (65%), a preference for assets to be given to loved ones instead of the government (59%) and 57% felt it was double taxation.
For those who believe IHT to be a fair tax, the top reason was because it supports public services (53%).
Demographically, the younger generation are more supportive of inheritance tax. Two in five (42%) Gen Z’s think IHT is unfair, compared to three in five (61%) Boomers.
When asked about views on income tax, perceptions of fairness were strongly linked to earnings. Whilst more than a third (37%) feel it’s unfair to pay income tax on annual earnings less than £50,000, far fewer take issue with higher earners being taxed more. Just 20% say it is unfair on earnings between £50,000 - £125,000, and just 17% for those earning £125,000+.
Whilst Brits are more protective when it comes to passing wealth to the next generation, they are seemingly more open to being taxed on current earnings. Just 20% view National Insurance contributions as an unfair tax.
John Chew, Technical Specialist, Tax and Estate Planning, Canada Life[CJ1] , said:
“It’s clear from the research that inheritance tax is not an issue confined to the wealthy few. With thresholds frozen since 2009, strong property growth, plus pensions coming into scope for IHT from 2027, more and more families will be finding themselves caught in the IHT net. This has helped HMRC collect a record £4.4bn from inheritance tax in the last six months, a figure forecast to increase in the years ahead.
“Despite inheritance tax topping the rankings as the UK’s most unfair levy, our research found fewer than a quarter of over 55s (23%) had given thought to an estate planning or inheritance tax strategy. Further reform expected in this month’s Budget may prompt more to consider their options when it comes to managing their wealth – whether through gifting or setting up a trust.
“Conversations with loved ones about inheritance can be challenging, but they are essential. Professional financial advice can provide invaluable guidance when it comes to inheritance and estate planning – offering tailored support in what can be a complex area.”
ENDS
Notes to editors
- Survey conducted by Opinium among a nat rep sample of 2000 UK adults between 10-14th October 2025.
- https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk/hmrc-tax-receipts-and-national-insurance-contributions-for-the-uk-new-annual-bulletin
- https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/inheritance-tax/
Enquiries
Press enquiries should be directed to:
07834 740227
About Canada Life:
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a Canadian headquartered, international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Through its subsidiary companies, Great-West Lifeco operates in Canada, the United States, and Europe. Great-West Lifeco trades on the Toronto Stock Exchange under the ticker symbol GWO and is a member of the Power Corporation group of companies.
Canada Life Limited began operations in the United Kingdom (UK) in 1903 and provides UK individuals and businesses with a range of retirement, investment, insurance and wealth solutions. Canada Life offers individual annuities, pension de-risking solutions, home finance, estate planning and investment options, and workplace protection products.
Canada Life Limited (no.973271) is registered in England and Wales, authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Stonehaven UK Limited (no.05487702), trading as Canada Life, is registered in England and Wales and is authorised and regulated by the Financial Conduct Authority. Canada Life International Limited (no.033178C) and CLI Institutional Limited (no.108017C) are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance (Ireland) DAC (no. 440141) and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.
Canada Life Asset Management is the brand for investment management activities undertaken by Canada Life Asset Management Limited (no.3846821), Canada Life Limited and Canada Life European Real Estate Limited (no.03846823). Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority.
Please note that while Canada Life Limited and Canada Life Asset Management Limited are regulated as stated above, property management and the provision of commercial mortgages are not regulated activities.