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Inheritance Tax
Tax Tables
Inheritance Tax
Inheritance tax rates and thresholds |
2027/28 |
2026/27 |
2025/26 |
2024/25 |
| Rate (for estates) | 40% | 40% | 40% | 40% |
| Reduced rate (for estates leaving 10% or more to charity) | 36% | 36% | 36% | 36% |
| Rate (for chargeable lifetime transfers) | 20% | 20% | 20% | 20% |
| Nil-rate band limit | £325,000 | £325,000 | £325,000 | £325,000 |
| Residence nil-rate band limit | £175,000 | £175,000 | £175,000 | £175,000 |
| Residence nil-rate band threshold for start of tapered withdrawal | £2,000,000 | £2,000,000 | £2,000,000 | £2,000,000 |
| 100% of agricultural property relief and business property relief allowance | £2,500,000 | £2,500,000 | N/A | N/A |
Lifetime exemption for gifts of non-business assets |
2027/28 |
2026/27 |
2025/26 |
2024/25 |
| Annual exemption per year (unused exemptions can be carried forward one year) | £3,000 | £3,000 | £3,000 | £3,000 |
| Regular gifts from surplus income | Unlimited | Unlimited | Unlimited | Unlimited |
| Gifts to a spouse, civil partner or charity | Unlimited | Unlimited | Unlimited | Unlimited |
| Small gift exemption per person | £250 | £250 | £250 | £250 |
| Gifts on marriage or civil partnership to children | £5,000 | £5,000 | £5,000 | £5,000 |
| Gifts on marriage or civil partnership to grandchildren | £2,500 | £2,500 | £2,500 | £2,500 |
| Gifts on marriage or civil partnership to others | £1,000 | £1,000 | £1,000 | £1,000 |
Relief on gifts made within seven years of death by years before death |
2027/28 |
2026/27 |
2025/26 |
2024/25 |
| 0 to 3 years | 0% | 0% | 0% | 0% |
| 3 to 4 years | 20% | 20% | 20% | 20% |
| 4 to 5 years | 40% | 40% | 40% | 40% |
| 5 to 6 years | 60% | 60% | 60% | 60% |
| 6 to 7 years | 80% | 80% | 80% | 80% |
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