Answers · UK 2025/26
Is inheritance between spouses or civil partners free of Inheritance Tax in the UK?
Yes, in almost all cases. Assets left to a spouse or civil partner on death pass under the spouse exemption completely free of Inheritance Tax, with no upper limit, provided both partners are UK-domiciled -- special rules and a capped exemption apply if the receiving spouse is domiciled outside the UK.
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The spouse exemption is one of the most valuable reliefs in UK Inheritance Tax. When one spouse or civil partner dies and leaves assets to the surviving spouse or civil partner, those assets pass completely free of Inheritance Tax, with no monetary limit at all -- a multi-million-pound estate can pass entirely to a surviving spouse without a single pound of Inheritance Tax being due at that point. This is different from the £325,000 nil-rate band and £175,000 residence nil-rate band, both of which are capped; the spouse exemption has no cap whatsoever for UK-domiciled couples. Alongside the exemption, any unused proportion of the deceased's nil-rate band and residence nil-rate band can be transferred to the surviving spouse, meaning a couple can potentially shelter up to £1 million combined (2 times £325,000 plus 2 times £175,000) from Inheritance Tax when the second spouse eventually dies and leaves the estate to their children, having used the first spouse's exemption to defer all tax on the first death. The main exception to the unlimited exemption applies where the surviving spouse is domiciled outside the UK for tax purposes while the deceased was UK-domiciled: in that situation, the exemption is capped at a fixed amount (linked to the nil-rate band), and any transfer above that cap is subject to Inheritance Tax in the normal way, unless the non-UK-domiciled spouse elects to be treated as UK-domiciled for Inheritance Tax purposes, which then restores the unlimited exemption but brings their worldwide assets into the scope of UK Inheritance Tax on their own eventual death. The exemption applies only to legally married spouses and registered civil partners -- unmarried cohabiting partners, however long-term the relationship, receive no equivalent exemption and their estate is taxed as if left to any other individual, which is one of the most common and costly Inheritance Tax planning gaps for long-term unmarried couples. Use the Inheritance Tax calculator to see how the spouse exemption and transferable nil-rate bands affect your estate planning.
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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.