IHT Threshold – historic and current rates

The IHT threshold – past, present and future, plus an IHT Calculator.

The Inheritance Tax Threshold from 1914 to 5th April 2026 (or Inheritance Tax  ‘nil rate band’) is the amount up to which an estate will have no Inheritance Tax to pay. Information on the Transferable Nil Rate Band is HERE.   If you need help sorting out Inheritance Tax after a death, contact us.  We can also help with lifetime trusts.   The Property Nil Rate Band also needs to be taken into account, as does the Transferable Nil Rate Band.  More reasons to contact us as too many people overpay IHT!

We do recommend professional help if Inheritance Tax might be payable, as the penalties for getting it wrong are severe, and there are allowances and savings which may not be obvious.  Give us a call or use the enquiry form and we will find you suitable advice at a sensible cost!

For those of you who should be sorting out some lifetime Inheritance Tax Planning, then you might want to consider an informal IHT review.  The cost is insignificant compared to the possible benefits, which has run into millions on occasion.  Most lawyers, accountants and financial advisers are aware of Inheritance Tax, but they are not always able to take a full overview of the various opportunities in each others areas.  We’re happy to work with other professionals.

If the estate – including any assets held in trust and gifts made within seven years of death – is more than the IHT threshold, Inheritance Tax will be due at 40 percent on the amount over the nil rate band.

Here are the IHT thresholds in use for deaths going back to 1914.

IHT thresholds – present day back to 18 March 1986

From	To	IHT /nil rate band
6 April 2009	5 April 2026	£325,000
6 April 2008	5 April 2009	£312,000
6 April 2007	5 April 2008	£300,000
6 April 2006	5 April 2007	£285,000
6 April 2005	5 April 2006	£275,000
6 April 2004	5 April 2005	£263,000
6 April 2003	5 April 2004	£255,000
6 April 2002	5 April 2003	£250,000
6 April 2001	5 April 2002	£242,000
6 April 2000	5 April 2001	£234,000
6 April 1999	5 April 2000	£231,000
6 April 1998	5 April 1999	£223,000
6 April 1997	5 April 1998	£215,000
6 April 1996	5 April 1997	£200,000
6 April 1995	5 April 1996	£154,000
10 March 1992	5 April 1995	£150,000
6 April 1991	9 March 1992	£140,000
6 April 1990	5 April 1991	£128,000
6 April 1989	5 April 1990	£118,000
15 March 1988	5 April 1989	£110,000
17 March 1987	14 March 1988	£90,000
18 March 1986	16 March 1987	£71,000

‘Capital Transfer Tax’ (IHT thresholds) – 17 March 1986 back to 13 March 1975 for England, Wales, Scotland and Northern Ireland

From	To	IHT /nil rate band
6 April 1985	17 March 1986	£67,000
13 March 1984	5 April 1985	£64,000
15 March 1983	12 March 1984	£60,000
9 March 1982	14 March 1983	£55,000
26 March 1980	8 March 1982	£50,000
27 October 1977	25 March 1980	£25,000
13 March 1975	26 October 1977	£15,000

‘Estate Duty’ (IHT thresholds) – 12 March 1975 back to 16 August 1914 for England, Wales and Scotland

From	To	IHT Threshold /nil rate band
22 March 1972	12 March 1975	£15,000
31 March 1971	21 March 1972	£12,500
16 April 1969	30 March 1971	£10,000
4 April 1963	15 April 1969	£5,000
9 April 1962	3 April 1963	£4,000
30 July 1954	8 April 1962	£3,000
10 April 1946	29 July 1954	£2,000
16 August 1914	9 April 1946	£100

‘Estate Duty’ (IHT thresholds) – 12 March 1975 back to 16 August 1914 for Northern Ireland only

From	To	IHT /nil rate band
22 March 1972	12 March 1975	£15,000
5 May 1971	21 March 1972	£12,500
4 June 1969	4 May 1971	£10,000
22 May 1963	3 June 1969	£5,000
4 July 1962	21 May 1963	£4,000
1 November 1954	3 July 1962	£3,000
29 August 1946	31 October 1954	£2,000
16 August 1914	28 August 1946	£100

IHT Threshold – historic

You might find the generic Which? Inheritance tax calculator of use. Here it is:

 

Back to Main Inheritance Tax page.