Inheritance Tax

Inheritance Tax

Inheritance Tax Rates and Allowances

The inheritance tax (IHT) nil rate band will remain frozen at £325,000 until 2017/18, and the rates of IHT payable on death remain unchanged at 40% or 36% where at least 10% of the net estate is left to charity.

The government will consult on extending the existing IHT exemption for the estates of members of the armed forces, whose death is caused or hastened by injury while on active service, to members of the emergency services.

What are the current rates, allowances and exemptions for Inheritance tax?

*Increased by any unused portion of a deceased spouse or civil partner’s nil rate band.

**From April 2017 it is intended that a new additional nil rate band will be available to cover the family home. This will be phased in, beginning at £100,000 per individual and increasing by £25,000 each year until it reaches £175,000.