Answers · UK 2025/26
What is the Inheritance Tax threshold in the UK for 2025/26?
The nil-rate band is £325,000 per person. A residence nil-rate band of £175,000 applies when a main home passes to direct descendants. Combined, a married couple or civil partners can pass on up to £1,000,000 IHT-free using all four allowances.
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UK Inheritance Tax (IHT) for 2025/26: standard nil-rate band £325,000 per person — frozen since 2009/10 and currently planned to stay frozen until April 2030. Residence Nil-Rate Band (RNRB) is an extra £175,000 when your main residence passes to direct descendants (children, grandchildren, step-children). Both bands transfer between spouses/civil partners, so a surviving spouse can have up to £650,000 NRB + £350,000 RNRB = £1,000,000 IHT-free estate. RNRB tapers by £1 for every £2 of estate value above £2 million — fully withdrawn at £2.35m (or £2.7m if transferred from a spouse). Above the thresholds, IHT is charged at 40% — or 36% if you leave at least 10% of your net estate to charity. Lifetime gifts: 7-year rule applies, with taper relief reducing tax on gifts made between 3 and 7 years before death.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.