Is Inheritance Tax different in Scotland?

Full answer

Inheritance Tax has not been devolved to any of the UK's nations and remains entirely a matter for the UK Parliament and HMRC, meaning the tax-free nil-rate band of £325,000, the additional residence nil-rate band of £175,000 (available when a main home passes to direct descendants, tapering away above a £2 million estate), and the standard 40% rate on the value above these thresholds (reduced to 36% if at least 10% of the estate is left to charity) all apply identically whether the deceased lived in Edinburgh, Cardiff, Belfast or London. What does differ in Scotland is the legal process for administering an estate, because Scotland has its own separate legal system. Instead of applying for a Grant of Probate (England and Wales) or a Grant of Representation (Northern Ireland), the Scottish equivalent is called Confirmation, issued by the Sheriff Court rather than the Probate Registry. Scots law on succession also differs substantially from English law in some respects -- for example, Scotland has 'legal rights', which give a surviving spouse and children an automatic entitlement to a share of the deceased's moveable estate regardless of what the will says, a concept that does not exist under English or Welsh law. So while the Inheritance Tax bill itself is calculated the same way UK-wide, who legally inherits what, and the administrative process for accessing the estate, can differ meaningfully in Scotland.