Fewer than one in five people in Great Britain think inheritance tax is fair, according to research by NFU Mutual.

Only 18% of 2,100 respondents polled by the rural insurer think inheritance tax is fair, compared to 57% who think it is unfair.

Inheritance tax is usually charged at 40% on the portion of an estate which exceeds £325,000.

An extra tax-free threshold of £175,000 - known as the residence nil-rate band - is available in certain conditions.

The £325,000 nil-rate threshold has not changed in 13 years and is set to remain frozen until April 2026.

Between April and December 2021, HMRC collected £4.6 billion in inheritance tax receipts - £600 million more than the same period in 2020.

Sean McCann, chartered financial planner at NFU Mutual, said:

"Inheritance tax is one of the most unpopular taxes and the numbers paying it are steadily rising, as are the size of the tax bills families are facing.

"An increasing number of families are using pensions and other gifting strategies to pass wealth down the generations tax-free."

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