Mark McLaughlin looks at when an estate worth up to £1m might be passed upon an individual’s death without an inheritance tax bill.
Everyone is entitled to an inheritance tax (IHT) ‘nil-rate band’ of up to £325,000 (for 2025/26) on death, reduced by any gifts which are not exempt within seven years before death.
That’s not all…
In addition, unused nil-rate band of a deceased spouse (or civil partner) is generally available to be transferred to the surviving spouse. The survivor’s nil-rate band can be increased by up to 100%, or one additional nil-rate band (i.e., a maximum of £325,000).
Furthermore, a claim for extra nil-rate band (‘residence nil-rate band’ (RNRB)) of up to £175,000 (for 2025/26) is available broadly where the family home (or an interest in it) is passed on death to a
