Loading tools
A tax on the estate of someone who has died, above certain thresholds.
Inheritance Tax is charged on estates worth more than £325,000 (the nil-rate band) at 40%. An additional residence nil-rate band of £175,000 may apply if you leave your main home to direct descendants. Married couples and civil partners can transfer any unused allowance to the surviving spouse. Gifts made more than 7 years before death are generally exempt, with tapered relief for gifts made 3–7 years before death.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.