The complete IHT guide — nil-rate band, residence nil-rate band, gifts and the 7-year rule, reliefs, the 2027 pension change, how to calculate and pay IHT, and planning strategies.
This guide is part of ProbateHelp's Inheritance Tax guide cluster.
This inheritance tax guide explains the core UK IHT ideas executors usually need: the nil-rate band, residence nil-rate band, transferable allowances, gifts, reliefs, payment timing and the link between IHT and probate.
The guide is part of ProbateHelp's inheritance-tax cluster and connects to practical pages on estate valuation, IHT400 reporting, direct payment from bank accounts, HMRC clearance and pension-related IHT changes.
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No. The standard nil-rate band is £325,000. A qualifying estate can reach up to £500,000 where the residence conditions are met. A qualifying surviving spouse or civil partner's estate can potentially reach up to £1 million where the relevant unused percentages transfer. The qualifying home value and the £2 million taper can reduce those maximums.
Transfers between spouses and civil partners are generally exempt from IHT. The exemption can be limited in some cross-border cases where one person is a long-term UK resident and the other is not. Any unused standard or residence band is claimed later as a percentage against the survivor's estate; the two claims are separate and are not automatic cash transfers.
The standard IHT rate is 40% on the value of the estate above the available threshold. A 36% rate can apply to the relevant component where the qualifying charitable gift is at least 10% of that component’s baseline amount.
IHT is normally due by the end of the sixth month after the month in which the person died. For example, if someone dies in April 2026, payment is normally due by 31 October 2026. Interest is charged on late payments. Some tax on property and certain other assets may be paid by instalments.
Continuing to occupy a gifted home rent-free normally reserves a benefit. Paying full market rent or giving up the benefit can end the reservation, but the cessation can itself start a seven-year transfer period. Check the facts and obtain tax advice.
A PET is usually a non-exempt outright gift by an individual to another individual. Some gifts to trusts follow different rules, while exemptions and retained-benefit rules can change the result. A PET becomes exempt if the donor survives seven years.
The deceased’s beneficial share is considered for IHT. In E&W, joint-tenancy and tenants-in-common rules affect whether it passes by survivorship or by will/intestacy; NI terminology and Scottish joint/common ownership and survivorship destinations differ. Check the title and jurisdiction.
IHT400 is the main Inheritance Tax account form that executors must complete for estates that are liable for IHT, or for certain other estates that do not qualify for the excepted-estate process. Where a full IHT400 is required, submit the account through the applicable HMRC process before the relevant grant application can proceed; the probate, confirmation and Northern Ireland routes differ.