Answers · UK 2025/26
What is the inheritance tax nil rate band in the UK for 2026/27?
The nil rate band (NRB) is £325,000 and the Residence Nil Rate Band (RNRB) is £175,000 for 2026/27. A married couple or civil partners passing their home to direct descendants can shelter up to £1,000,000 combined before IHT at 40% applies.
Full answer
The nil rate band is the threshold below which no inheritance tax is payable on a deceased person's estate. Key figures for 2026/27: - Nil Rate Band (NRB): £325,000 per person (frozen until April 2030) - Residence Nil Rate Band (RNRB): £175,000 per person (frozen until April 2030) - IHT rate above the combined threshold: 40% - Reduced rate (10%+ to charity): 36% How married couples and civil partners benefit: - Any NRB and RNRB unused on the first death can be transferred to the surviving spouse or civil partner's estate. - Combined NRB: £325,000 x 2 = £650,000 - Combined RNRB: £175,000 x 2 = £350,000 - Total combined threshold: £1,000,000 Residence Nil Rate Band conditions: - The RNRB only applies if your main residence (or the proceeds of selling it, if downsized since 8 July 2015) passes to direct descendants (children, grandchildren, step-children). - RNRB tapers away for estates above £2,000,000 -- reducing by £1 for every £2 above this threshold. Transferring unused thresholds: - The surviving spouse does not inherit the allowance automatically -- the personal representative of the second estate must claim the transferable NRB/RNRB via form IHT402 / IHT435. Upcoming reform: - The Autumn 2024 Budget announced that from April 2027, pension pots will be included in the estate for IHT purposes. This is a significant change for those using pensions as an IHT planning tool.
Related guides
More answers
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.