Answers · UK 2025/26
What is the inheritance tax nil-rate band in 2026?
The IHT nil-rate band is £325,000 for 2026/27, frozen until 2030. The residence nil-rate band (RNRB) adds £175,000 where a main home is left to direct descendants. A surviving spouse can inherit both allowances, giving a combined £1 million threshold for married couples.
Full answer
The Inheritance Tax (IHT) nil-rate band (NRB) for 2026/27 is £325,000, unchanged since 2009/10 and now frozen at this level until at least 2029/30. The Residence Nil-Rate Band (RNRB) adds a further £175,000 where a main residence is passed to direct descendants (children, grandchildren). The RNRB tapers by £1 for every £2 of estate value over £2 million. On death, a surviving spouse or civil partner automatically inherits any unused NRB and RNRB from their deceased partner. This means a married couple can have a combined IHT-free threshold of up to £1 million (£325,000 + £175,000, doubled) assuming they qualify for both allowances and the estate is under £2 million. IHT is charged at 40% on the value of the estate above the available thresholds. A reduced rate of 36% applies if at least 10% of the net estate is left to charity.
Try the calculator
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.