Tens of thousands of homeowners have been warned they face a costly inheritance tax shock thanks to rising house prices.
Property prices have risen 27% over the past five years while the inheritance rate band has been frozen at £325,000, according to wealth adviser Towry Law.
The Government raised more than £3.1 billion in inheritance tax receipts in the 2012-13 tax year, an increase of 8% on the previous year.
The £325,000 nil rate band was set in 2009.
It will remain frozen at that rate until 2019, despite the resurgence in property prices across the UK, and Prime Minister David Cameron's calls for the rate to be raised to £1 million.
For a single person, any assets above this threshold may be taxed at 40% on death.
Initially the freeze on the nil rate band did not attract much attention as the average UK house price at the start of 2009 was £195,000 and falling, Towry Law said.
Five years on, the market has recovered and the average UK house price now stands 30% higher at £253,000.
In London, the impact on an inheritance tax bill is even more marked with an average house price of £458,000.
With one in 10 UK households sitting on assets totalling £1m or more, more money will find its way to the taxman if people do not take action to mitigate their potential inheritance tax liability.
Ian Dyall, estate planning expert, Towry said: "There are many steps that can be taken to mitigate your inheritance tax bill.
"The most extreme but obvious choice is to downsize your home, and then gift' the surplus money to children or grandchildren."
Recent figures show that households in London and the South East pay half of all inheritance tax.
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