Glossary · UK
What is Nil-Rate Band (NRB)?
The £325,000 IHT-free threshold per person — no Inheritance Tax below this.
Full Definition
The Nil-Rate Band (NRB) is the threshold below which no Inheritance Tax is charged on an estate. £325,000 per person in 2025/26 — frozen until 2030. Above this, IHT applies at 40% (36% if 10%+ to charity). Unused NRB transfers to a surviving spouse/civil partner — so a widow can have up to £650,000. With the additional Residence Nil-Rate Band (RNRB) of £175,000 (plus its transferable portion), a couple passing a family home to direct descendants can pass up to £1,000,000 IHT-free.
Related Calculators
Read More
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.