UK Inheritance Tax 2026: The Complete Guide
Everything you need to know about inheritance tax in the UK, including rates, allowances, exemptions, and planning strategies.
What is Inheritance Tax?
Inheritance Tax (IHT) is a tax on the estate of someone who has died, including all property, money, and possessions. In the UK, IHT is charged at 40% on the portion of an estate that exceeds the nil-rate band threshold.
Current Inheritance Tax Rates and Allowances
The standard inheritance tax nil-rate band for 2025 is £325,000. This means the first £325,000 of your estate is tax-free. Anything above this threshold is typically taxed at 40%.
Residence Nil-Rate Band
In addition to the standard nil-rate band, you may be entitled to the residence nil-rate band (RNRB) if you leave your home to direct descendants. This can add up to £175,000 to your tax-free allowance.
IHT Planning Strategies
There are several strategies to reduce your inheritance tax liability, including making gifts during your lifetime, setting up trusts, and using business property relief.
Calculate Your Inheritance Tax
Use our calculator to estimate your inheritance tax liability and explore planning options.
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