Inheritance Tax UK: Thresholds, Rates & How to Reduce Your IHT Bill

Tax Guides · 10 min read · Updated 2026-03-24

A comprehensive guide to Inheritance Tax in the UK, covering the nil-rate band, residence nil-rate band, IHT rates, exemptions, and strategies for reducing your estate's tax liability.

Written by Krishna, Founder & HMRC-registered tax agent at TaxRoot.

What is the Inheritance Tax threshold for 2025/26?

The standard nil-rate band is £325,000. If you leave your main home to direct descendants, the residence nil-rate band adds another £175,000, giving a total threshold of £500,000. Married couples can combine their allowances for a potential threshold of up to £1 million.

Related TaxRoot services

• Self Assessment tax return — £134 flat fee
• Corporation Tax + annual accounts — from £389/yr
• Making Tax Digital for Income Tax — £34/month
• VAT returns — from £39/month
• UK Limited Company Registration — £100

Personal Tax Services · See full TaxRoot pricing · More TaxRoot guides