02081333786
02081333786
IHT may be payable when an individual’s estate is worth more than the IHT nil rate band when they die.
Lifetime and death transfers between UK domiciled spouses are exempt from IHT.
For 2019/20, a further nil rate band of £150,000 (2018/19 – £125,000) may be available in relation to current or former residences.
The IHT threshold available on death may be increased for surviving spouses as there may have been a nil rate band not used, or not fully used, on the previous death.
There are reliefs for some business and farming assets which reduce their value for IHT purposes.
IHT may also be payable on gifts made in an individual’s lifetime but within seven years of death.
Some lifetime gifts are exempt.
Transfers of assets into trust made in an individual’s lifetime may be subject to an immediate charge but at lifetime rates.
There are also charges on some trusts.
Standard nil rate band: £325,000
| Rate | % |
|---|---|
| Lifetime rate | 20 |
| Death rate | 40 |
| Death rate if sufficient charitable legacies made | 36 |
Annual Exemption: £3,000
Small Gifts: £250
Marriage: The amount of relief depends on who the gift is from…
| Gift from | Amount (£) |
|---|---|
| Parent | 5,000 |
| Grandparent | 2,500 |
| Bride/groom | 2,500 |
| Other | 1,000 |
| Years before death | % of death charge |
|---|---|
| 0-3 | 100 |
| 3-4 | 80 |
| 4-5 | 60 |
| 5-6 | 40 |
| 6-7 | 20 |
Find out how we help our clients determine the right strategic priorities to grow profitably and offer support with practical solutions.
Providing trusted accountancy, tax, and advisory services backed by years of professional experience and industry knowledge.
TaxDirect - Copyright 2026. All rights reserved.