UKWhat is the current inheritance tax threshold?
The current inheritance tax (IHT) threshold in the UK is £325,000 for an individual, known as the 'nil-rate band', and remains frozen until at least April 2028.
What the Law Says
The Inheritance Tax Act 1984 sets the legal framework for inheritance tax in the UK, including the basic threshold — the nil-rate band — above which tax is generally charged. While section 7 of the Act defines chargeable transfers, the specific threshold amount is set by secondary legislation and Treasury announcements; however, the statutory foundation for charging IHT on estates above a specified value originates here.
The standard inheritance tax nil-rate band is £325,000 per person. This has been frozen since 6 April 2009 and will remain unchanged until at least 5 April 2028, as confirmed by HMRC and the Finance Acts.
An additional Residence Nil-Rate Band (RNRB) of up to £175,000 may apply if you leave your home to direct descendants (e.g., children or grandchildren), subject to tapering for estates over £2 million.
Transfers between spouses or civil partners are exempt from IHT, meaning the unused nil-rate band (and RNRB) can be transferred to the surviving partner — potentially doubling the available allowance to £650,000 (plus up to £350,000 RNRB).
Inheritance tax is charged at 40% on the value of the estate above the applicable thresholds, though reduced to 36% if at least 10% of the net estate is left to charity.
Statutory TextA transfer of value shall be a chargeable transfer unless it is an exempt transfer.
— Inheritance Tax Act 1984, s. 7 — Chargeable transfers
What to Do
Calculate the total value of the deceased’s estate (including property, investments, and gifts made within 7 years).
Deduct debts, funeral expenses, and any applicable exemptions (e.g., spouse exemption, charity gifts).
Apply the £325,000 nil-rate band and, if eligible, the residence nil-rate band (up to £175,000).
Determine whether any unused allowance can be transferred from a deceased spouse or civil partner.
File form IHT400 with HMRC within 12 months of death and pay any tax due by the end of the sixth month after the month of death.
Sources
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US FederalNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.