Nearly one in 10 estates liable for inheritance tax (IHT) paid over £500,000 in the latest available year, with the number expected to rise from April 2027 when pensions are set to be included in IHT calculations, according to data obtained by Rathbones, one of the UK’s leading wealth and asset management firms.

New research by Rathbones Group shows buy to lets and holiday homes in tourist hotspots have been particularly vulnerable, with rising borrowing costs and weaker capital gains undermining their long-term investment case.