Estate Planning
UK Inheritance Tax (IHT) Thresholds & Residence-Based Shift
UK 40% Inheritance Tax, £325,000 Nil-Rate Band, £175,000 Residence Nil-Rate Band, and the shift from domicile to residence-based IHT.
Key Statutory Thresholds & Rules (2025/2026)
Nil-Rate Band: £325,000 per person. Residence Nil-Rate Band (main residence passed to direct descendants): £175,000. Combined married threshold: up to £1,000,000.
HMRC Compliance & Tax Planning Checklist
- Verified against GOV.UK Statutory Tax Guidance and HMRC Finance Act updates.
- Applies to UK tax year: 6 April 2025 – 5 April 2026.
- Self-Assessment deadlines: 31 October (Paper) / 31 January (Online).
Important Notice: HMRC rules change based on your individual ties, physical presence days, and residency history. Always consult a qualified Chartered Tax Adviser (CTA) for personal filings.