Inheritance Tax on £400,000 Estate (2025/26) — UK IHT Guide
On a £400,000 UK estate for the 2025/26 tax year, Inheritance Tax was £0 for a married couple passing the main residence to direct descendants — an effective rate of 0.0%. A single person with only their own allowances would have paid £0 on the same estate.
Couple (2025/26)
£0
0.0% effective
Single person (2025/26)
£0
£0 more vs couple
Allowance & tax breakdown — couple (2025/26)
Couple NRB (2 × £325,000)£650,000
Couple RNRB (max £350,000)£350,000
Total tax-free allowance£1,000,000
Taxable estate£0
IHT rate (2025/26)40%
Total Inheritance Tax£0
Single person on £400,000 in 2025/26
A single individual on a £400,000 estate gets only one set of allowances: £325,000 NRB plus £175,000 RNRB (full £175,000). After £500,000 of total allowance, the taxable portion is £0 — taxed at 40% for a total IHT bill of £0. That is £0 more than the married-couple scenario for the same estate in 2025/26.
What was different about 2025/26
2025/26 is now the 17th consecutive year with NRB at £325,000 and the 6th with RNRB at £175,000. The freeze is legislated to April 2030 under current rules. From April 2027 most unused pension pots will enter the IHT estate — but that has no effect on 2025/26 deaths.
Same £400,000 estate across years
On a £400,000 estate (couple scenario) IHT would have been £0 in 2023/24 and £0 in 2024/25, compared with £0 in 2025/26.
How much Inheritance Tax was due on a £400,000 estate in 2025/26?
On a £400,000 UK estate for 2025/26, IHT was £0 for a married couple passing the main residence to direct descendants (using 2× NRB and 2× RNRB, tapered where applicable), or £0 for a single person with only their own NRB and RNRB. The headline rate was 40%.
What was the Nil-Rate Band in 2025/26?
The Nil-Rate Band for 2025/26 was £325,000 per person — the same figure as every year since April 2009. A married couple can transfer any unused NRB to the survivor, giving up to £650,000 combined.
What was the Residence Nil-Rate Band in 2025/26?
The Residence Nil-Rate Band (RNRB) for 2025/26 was £175,000 per person, available when a qualifying main residence passes to direct descendants. For a couple that's up to £350,000 — but the RNRB tapers by £1 for every £2 the estate exceeds £2,000,000.
Does the RNRB taper apply to a £400,000 estate?
No. The estate (£400,000) is below the £2,000,000 taper threshold, so the full RNRB is available — £350,000 for a couple or £175,000 for a single person.
Single person vs married couple — what's the difference on £400,000 in 2025/26?
A married couple's transferable allowances mean IHT on this £400,000 estate was £0 for 2025/26. A single individual with only one set of allowances would have paid £0 — £0 more. The spousal exemption and transferable NRB/RNRB are the most valuable IHT planning tools available.
What was the IHT rate in 2025/26?
The standard Inheritance Tax rate for 2025/26 was 40% on the taxable estate above the available allowances. A reduced rate of 36% applied where at least 10% of the net estate was left to charity — useful planning for larger estates such as this one.
How does £400,000 in 2025/26 compare to other tax years?
Across our historical matrix: 2023/24 = £0, 2024/25 = £0; 2025/26 = £0 (couple scenario). Differences are small because NRB, RNRB and the 40% rate have been frozen — but every year of freeze means more real-terms drag.
Can the IHT bill on £400,000 be reduced?
Common planning steps that may reduce the £0 bill include: lifetime gifts that survive 7 years (potentially exempt transfers), leaving 10%+ of the net estate to charity (drops the rate from 40% to 36%), using the spousal exemption between spouses, pension nominations (outside the estate for 2025/26), and Business / Agricultural Property Relief on qualifying assets.
Can I still file or amend an IHT400 for 2025/26?
HMRC normally enquires into IHT accounts within 4 years of submission (extended for negligence or fraud). For deaths in 2025/26, account-correction or repayment claims should be made via the HMRC Inheritance Tax helpline or by writing to BX9 1HT, citing the original IHT400 reference. Take qualified advice on amendments.
Where are the official 2025/26 HMRC rates published?
HMRC publishes IHT rates and thresholds at gov.uk/inheritance-tax. Our figures are derived from the 2025/26 entry in our internal rates table, which mirrors HMRC's published NRB (£325,000), RNRB (£175,000), £2m taper threshold and 40% headline rate.
Disclaimer: Figures use published 2025/26 HMRC NRB, RNRB, taper threshold and 40% rate. The couple scenario assumes full transfer of unused NRB+RNRB on first death and main residence passing to direct descendants. Lifetime gifts, BPR/APR, trusts, charitable bequests and pension positions can change actual liability — speak to a STEP-qualified adviser.