IHT Worldwide Exposure Evaluator
Key IHT Thresholds
- £325,000 Nil-Rate Band: Tax-free threshold per individual.
- £175,000 Residence Nil-Rate Band: Extra allowance when leaving main home to children.
- 40% Tax Rate: Charged on estate value above tax-free thresholds.
Frequently Asked Questions (UK IHT)
Under the 2025/2026 IHT reforms, if an individual who was UK tax resident for 10-20 years leaves the UK, their worldwide estate remains subject to UK IHT for a 'tail' period of 3 to 10 years depending on how long they were resident.
Transfers between married spouses or civil partners are 100% exempt from UK IHT, regardless of value, provided both spouses are UK tax resident.