The IHT threshold
The Inheritance Tax Threshold from 1914 to 5th April 2021 (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!
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.
| From | To | IHT /nil rate band |
|---|---|---|
| 6 April 2009 | 5 April 2021 | £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 |
| 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 |
| 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 |
| 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
Back to Main Inheritance Tax page.
May 2018.