What is the IHT nil-rate band?

The standard nil-rate band is £325,000. Married couples can transfer unused NRB, potentially doubling it to £650,000.

How does the Residence NRB work?

An additional £175,000 RNRB applies when a main residence is passed to direct descendants. This brings the total threshold to £500,000 per person or £1m for couples.

What gifts are exempt from IHT?

Annual gift exemption: £3,000/year. Small gifts: £250/person. Wedding gifts: £5,000 (parent), £2,500 (grandparent), £1,000 (other). Gifts out of surplus income are also exempt.

UK Inheritance Tax & Nil-Rate Band Calculator

Calculate UK Inheritance Tax (IHT) liability. Standard nil-rate band: £325,000 (frozen until 2028). Residence NRB: £175,000. Spouse transfer. Rate: 40% above threshold.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate UK Inheritance Tax (IHT) liability. Standard nil-rate band: £325,000 (frozen until 2028). Residence NRB: £175,000. Spouse transfer. Rate: 40% above threshold. Use the uk inheritance tax result to inform your calculation.

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Frequently Asked Questions

What is the IHT nil-rate band?

How does the Residence NRB work?

What gifts are exempt from IHT?