In the North West, more than 2,000 estates paid a combined £347 million in inheritance tax in the year to April 2023.

That is according to HM Revenue & Customs (HMRC) figures analysed by NFU Mutual.

The data shows that 2,040 estates in the region faced an average bill of £170,000, with Altrincham and Sale West topping the list.

Sean McCann, chartered financial planner at NFU Mutual, said: “Inheritance tax is impacting a growing number of families, as property and asset values continue to rise.

“The main £325,000 tax-free allowance and £175,000 allowance that allows you to pass a share of the family home to children or grandchildren remain frozen until 2030.

“The proposal to bring pensions into the inheritance tax net from April 2027 will only accelerate the number of families impacted.”

In Altrincham and Sale West, 82 estates were liable for a total of £37 million in inheritance tax.

Nationally, HMRC data shows that 31,500 estates paid the levy in 2022-23, marking a 13 per cent increase on the previous year.

This represented 4.62 per cent of all deaths.

The rise has been attributed to climbing property prices and the ongoing freeze on tax-free thresholds, which are increasing the number of estates exceeding the inheritance tax limit.

Mr McCann said: “We are seeing a sharp increase in calls from those seeking inheritance tax advice, particularly in light of proposed changes to agricultural property relief and business property relief from April next year which will have a huge impact on farming and business communities.”

He also offered advice for reducing potential tax liabilities.

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Mr McCann said: “One way to reduce the problem is to make gifts during your lifetime.

“While for most gifts you need to survive seven years to ensure they are tax-free, there are some gifts which are exempt immediately.

“Each tax year you can give away gifts totalling £3,000 immediately free of inheritance tax.

“If you haven’t used the previous year’s allowance, you can go back one year and get it.

“For example, a couple could potentially give away £12,000 without having to worry about the seven-year clock.”

The Office for Budget Responsibility estimates that by 2029-30, tax receipts from inheritance tax will rise to £14.3 billion, with 9.5 per cent of UK deaths resulting in a charge.