Inheritance Tax for Widows and Widowers: Your Allowances
If you have lost your husband, wife, or civil partner, you may be entitled to significantly more inheritance tax relief than you realise. The transferable nil-rate band and residence nil-rate band could give you up to £1,000,000 in tax-free allowances — but only if you know how to claim them.
Note: This article uses hypothetical scenarios created for educational purposes only. The names, situations, and outcomes are fictional examples designed to illustrate IHT planning concepts. Always consult with FCA-regulated financial advisers and qualified tax professionals for advice specific to your circumstances.
Maximum Allowances for a Surviving Spouse
What a Surviving Spouse Inherits in IHT Terms
When your spouse or civil partner died, the inheritance tax position on their estate depended on who they left their assets to. The most common scenario is that everything passed to you as the surviving spouse under the unlimited spouse exemption — meaning no IHT was due on the first death.
The important consequence is that if your late spouse's nil-rate band was not used (because everything passed to you tax-free under the spouse exemption), that unused allowance can be transferred to your estate when you die. This is the transferable nil-rate band.
The same principle applies to the residence nil-rate band. If your late spouse did not use their RNRB (because their home passed to you rather than to children), the unused RNRB can also be transferred.
How to Claim the Transferable Nil-Rate Band
The transferred NRB is not automatic — it must be claimed by the executor of your estate using HMRC form IHT402. The claim is made when your estate is being administered after your death, not during your lifetime.
What Evidence Is Needed
- Death certificate of the first spouse
- Copy of their will (or confirmation they died intestate)
- Grant of probate or letters of administration from the first death
- Details of how the first spouse's estate was distributed
- Any IHT forms completed for the first spouse's estate (if available)
Keep all documents relating to your late spouse's estate in a safe place. If you were widowed many years ago, it may be difficult to locate these records later. The more documentation you can preserve now, the easier the claim will be for your executors.
Time Limits
The claim must be made within two years of the surviving spouse's death, or within three months of the personal representative first acting (whichever is later). In practice, the claim is usually made alongside the main IHT return for your estate.
The Residence Nil-Rate Band for Widows and Widowers
The residence nil-rate band (RNRB) provides an additional £175,000 tax-free allowance when you leave your home (or a share of it) to direct descendants — your children, grandchildren, or stepchildren.
As a surviving spouse, you may be able to claim both your own RNRB and your late spouse's transferred RNRB, giving you up to £350,000 of additional relief.
Can You Claim a Transferred RNRB If Your Spouse Died Before 2017?
Yes. The RNRB was introduced in April 2017, but the transfer mechanism works on the proportion unused, not the amount. If your spouse died before 2017, they used 0% of their RNRB (because it did not exist yet). This means 100% is available for transfer — giving you an extra £175,000 at today's rates.
What If Your Spouse Did Not Use Their Full NRB?
The transferred NRB is based on the proportion of the NRB that was unused on the first death, applied to the NRB threshold at the time of the second death.
David died in 2010 when the NRB was £325,000. He left £100,000 to his children and the rest to his wife, Margaret. He used £100,000 of his £325,000 NRB — approximately 31%.
The unused proportion is 69% (£225,000 ÷ £325,000). When Margaret dies in 2026, the NRB is still £325,000. Margaret can claim 69% of £325,000 = £224,250 as her transferred NRB.
Margaret's total NRB: £325,000 (own) + £224,250 (transferred) = £549,250.
The RNRB Taper If Your Estate Exceeds £2 Million
The RNRB (both your own and any transferred amount) tapers away if your estate exceeds £2 million. The taper is £1 of RNRB lost for every £2 above £2 million.
| Estate value | RNRB available (single) | RNRB available (with transfer) |
|---|---|---|
| £2,000,000 or below | £175,000 | £350,000 |
| £2,200,000 | £75,000 | £250,000 |
| £2,350,000 | £0 | £175,000 |
| £2,500,000 | £0 | £75,000 |
| £2,700,000 | £0 | £0 |
For a surviving spouse with a transferred RNRB of £350,000, the RNRB is completely lost once the estate reaches £2.7 million. If your estate is close to or above £2 million, this taper is critical to understand. See our RNRB taper calculator to check your position.
APR/BPR Allowance Transfer for Surviving Spouses
From April 2026, there is a new transferable allowance for agricultural and business property relief. The APR/BPR reform introduces a £2.5 million per person cap on these reliefs, and the unused portion can be transferred to a surviving spouse.
This is particularly important for widows and widowers whose late spouse owned qualifying agricultural or business assets. If the deceased spouse did not use their full £2.5 million APR/BPR allowance, the surviving spouse can claim the unused portion — potentially sheltering up to £5 million of qualifying assets between the two estates.
Case Study: Margaret
Margaret's husband Peter died in 2021. He left everything to Margaret under the spouse exemption, so no IHT was paid and none of his NRB or RNRB was used. Margaret now has an estate worth £1.1 million, including the family home (worth £450,000). She plans to leave everything to her two children equally.
| Component | Value |
|---|---|
| Family home | £450,000 |
| Savings and investments | £550,000 |
| Pension (pre-April 2027, excluded) | £200,000 |
| Total taxable estate | £1,100,000* |
*Pension excluded from estate as death occurs before April 2027 in this scenario
| Allowance | Amount |
|---|---|
| Margaret's own NRB | £325,000 |
| Peter's transferred NRB (100% unused) | £325,000 |
| Margaret's RNRB (home to children) | £175,000 |
| Peter's transferred RNRB (100% unused) | £175,000 |
| Total allowances | £1,000,000 |
| Calculation | Amount |
|---|---|
| Taxable estate | £1,100,000 |
| Less: total allowances | −£1,000,000 |
| Amount subject to IHT | £100,000 |
| IHT at 40% | £40,000 |
Margaret's estate faces £40,000 in IHT. Without the transferred allowances from Peter, the bill would be £210,000 (only £500,000 of allowances). The transferred NRB and RNRB save Margaret's children £170,000.
Practical Steps to Take Now
- Locate your late spouse's estate documents. Your executors will need these to claim the transferred allowances. If you cannot find them, contact the probate registry or your solicitor.
- Check your will. Ensure your home passes to direct descendants (children or grandchildren) to qualify for the RNRB. If you leave everything to a non-descendant, the RNRB is lost.
- Monitor your estate value. If your estate is approaching £2 million, the RNRB taper could reduce your allowances significantly. Consider whether gifting or other planning could bring the estate below the threshold.
- Consider the pension impact. From April 2027, your pension pot will be included in the estate. Read our pension IHT guide to understand the impact.
- Use the calculator. Model your specific situation to see exactly what allowances are available and what IHT your estate may face.
Frequently Asked Questions
How much can a widow or widower pass on tax-free?
A surviving spouse can potentially pass on up to £1,000,000 tax-free: their own nil-rate band of £325,000, the transferred nil-rate band from their late spouse (up to £325,000), their own residence nil-rate band (up to £175,000), and the transferred residence nil-rate band (up to £175,000). The exact amount depends on how much of the deceased spouse's allowances were used.
How do I claim the transferable nil-rate band as a widow?
The transferable nil-rate band is claimed by the executor of the surviving spouse's estate using HMRC form IHT402. You will need evidence of the first spouse's death, their will or grant of probate, and details of how their estate was distributed. The claim must be made within two years of the surviving spouse's death, or within three months of the personal representative first acting.
Can I claim my late spouse's RNRB even if they died before 2017?
Yes. Even though the residence nil-rate band was only introduced in April 2017, a surviving spouse can claim a transferred RNRB based on what the deceased spouse would have been entitled to. If the first spouse died before 2017, 100% of the RNRB (up to £175,000) is available for transfer because none of it was 'used' on the first death.
What happens to the RNRB if my estate exceeds £2 million?
The residence nil-rate band tapers by £1 for every £2 your estate exceeds £2 million. For a surviving spouse with a transferred RNRB of £350,000, the RNRB is completely lost once the estate reaches £2.7 million. This taper applies to both your own RNRB and any transferred RNRB from your late spouse.
Can a surviving spouse claim the deceased's unused APR/BPR allowance?
Yes. From April 2026, the unused portion of the deceased spouse's £2.5 million APR/BPR allowance can be transferred to the surviving spouse. This works similarly to the transferable nil-rate band. If the first spouse used none of their APR/BPR allowance, the survivor could claim up to £5 million of combined agricultural and business property relief.
Calculate Your Allowances as a Surviving Spouse
Estate Map's calculator automatically applies transferred nil-rate bands and RNRB from a deceased spouse. See exactly how much you can pass on tax-free.
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