Nil-Rate Band

The nil-rate band is the standard Inheritance Tax-free threshold in the UK. Estates below the nil-rate band pay no Inheritance Tax; amounts above it are taxed at 40% (or 36% where 10% or more of the net estate is left to charity). [source: gov-uk/inheritance-tax-2026-04-29.html]

The current nil-rate band is £325,000 and has been frozen at that level since 2009. The current freeze runs to April 2030. [source: gov-uk/inheritance-tax-2026-04-29.html]

A separate residence nil-rate band of £175,000 stacks on top where the deceased's main home passes to direct descendants, taking the combined threshold to £500,000 for an individual, or up to £1,000,000 for a couple where the first spouse left their unused allowance to the survivor. [source: gov-uk/inheritance-tax-2026-04-29.html]

The nil-rate band is also one of the criteria that determines whether an estate is an excepted estate and therefore exempt from filing IHT400 separately to HMRC.

Last verified: 29 April 2026 against gov.uk/inheritance-tax.