What is the Inheritance Tax threshold?
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In short: £325,000 'nil-rate band' per person, plus up to £175,000 'residence nil-rate band' when leaving a home to direct descendants.
The basic Inheritance Tax threshold (the 'nil-rate band') is £325,000 per person. It has been frozen at this level since 2009 and is set to remain frozen until April 2030.
If you leave your home to a direct descendant (child, grandchild) you can also use the Residence Nil-Rate Band, worth up to £175,000. It tapers away for estates worth more than £2 million.
Spouses and civil partners inherit each other's unused allowances, so a couple can together pass up to £1 million tax-free when the second one dies — provided the home is left to direct descendants and the estate is under £2 million.
Primary source: gov.uk/inheritance-tax