Inheritance Tax Rates

Inheritance Tax thresholds

The Inheritance Tax threshold (or ‘nil rate band’) is the amount up to which an estate will have no Inheritance Tax to pay.

Inheritance Tax is paid if a persons estate (their property, money and possessions) is worth more than £325,000 when they die. This is called the Inheritance Tax threshold.

There are different thresholds for previous years.

Inheritance Tax rates

  • The rate of Inheritance Tax is 40% on anything above the threshold.
  • The rate may be reduced to 36% if 10% or more of the estate is left to charity.

Who pays Inheritance Tax

Usually the ‘executor’ of the will or the ‘administrator’ of the estate pays Inheritance Tax using funds from the estate.

An executor is a person named in the will to deal with the estate – there can be more than one. An administrator is the person who deals with the estate if there’s no will.

Trustees are responsible for paying Inheritance Tax on trusts.

If you’ve received an inheritance, you usually don’t pay Inheritance Tax. There are some exceptions. You may still have to pay other taxes.

You may have to pay Inheritance Tax if someone who died gave you a gift while they were alive.

Please feel free to contact us if you require any further information.

The information displayed in this section should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained where necessary. We accept no responsibility of use of above information on your own.