Inheritance tax is charged at 40% on the estate above the nil-rate band (£325,000 in 2026/27, frozen until April 2031). The residence nil-rate band adds £175,000 when a home passes to direct descendants, giving a £500,000 threshold per person and up to £1,000,000 for a couple. Gifts made more than 7 years before death are exempt. Charitable gifts reduce the taxable estate and a 10% charity gift reduces the rate on the remainder to 36% (HMRC, gov.uk, 2026). |
Inheritance Tax UK: Thresholds, Rates and How to Reduce Your BillUK inheritance tax is charged at 40 percent on the value of an estate above the available nil-rate bands. The standard nil-rate band is currently 325,000 pounds per individual; an additional residence nil-rate band of 175,000 pounds can apply where a qualifying main residence passes to direct desce 
Photo by Vodafone x Rankin everyone.connected on Pexels Editorial Disclaimer The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA. |
|