## Understanding the UK Inheritance Tax Threshold 2026 Inheritance Tax (IHT) is a tax on the estate of someone who has passed away. Here are the key thresholds and changes for 2026/26 and beyond. ### Core Allowances 2026/26 | Allowance | Amount | Notes | |-----------|--------|-------| | **Nil Rate Band (NRB)** | £325,000 | Standard IHT-free threshold | | **Residence Nil Rate Band (RNRB)** | £175,000 | When leaving home to direct descendants | | **Individual Maximum** | £500,000 | Combined NRB + RNRB | | **Couple Maximum** | £1,000,000 | Transferable between spouses | | **IHT Rate** | 40% | Applied above thresholds | ### Threshold Freeze Extended All thresholds remain frozen at 2020/21 levels through **5 April 2031** (extended in Budget 2026). ### Residence Nil Rate Band Conditions - Only applies when leaving your **main residence** to direct descendants (children/grandchildren) - **Taper rule**: Estates over £2 million lose £1 of RNRB for every £2 above - RNRB disappears entirely if estate exceeds £2.35 million ### Major Changes from April 2026 | Change | Detail | |--------|--------| | **Business Property Relief (BPR) Cap** | 100% relief capped at first £1 million; 50% above | | **Agricultural Property Relief (APR) Cap** | 100% relief capped at first £1 million; 50% above | | **Combined APR/BPR Allowance** | £1 million cap applies to combined assets | | **AIM Shares** | BPR reduced from 100% to 50% | ### Spouse/Civil Partner Transfers - Any unused NRB and RNRB transfer to surviving partner - Transfers between spouses = IHT-free ### From April 2027: Pensions Unused pension funds will be **included in estate** for IHT (previously exempt). For assistance with estate planning and documenting your wishes, [discover our services](/pricing) or [start now](/chat/mandat). ## FAQ 1. **What is the nil rate band for 2026?** £325,000 per person, frozen until April 2031. 2. **What is the residence nil rate band?** £175,000 additional allowance when leaving home to children/grandchildren. 3. **What is the maximum IHT-free amount for a couple?** £1,000,000 combined (£500,000 each). 4. **What is the IHT tax rate?** 40% on amounts above the threshold. 5. **What changes from April 2026?** Business and Agricultural Property Relief capped at £1 million at 100%. --- **Avertissement réglementaire** : Les informations présentées dans cet article sont fournies à titre indicatif et peuvent évoluer. Pour des données officielles et actualisées, consultez les sources gouvernementales de votre pays. MyLastWill.io aide à documenter vos volontés funéraires mais ne se substitue pas aux conseils d'un professionnel du droit.