IHT Threshold – historic rates

The IHT threshold

save-IHTThe IHT Threshold (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, but they are not cheap, so you might want to buy Inheritance Tax Secrets first.

For those of you who should be sorting out some lifetime Inheritance Tax Planning, then you might want to consider an informal IHT review with our tax solicitor.  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 per cent 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
FromToIHT Threshold /nil rate band
6 April 2009£325,000
6 April 20085 April 2009£312,000
6 April 20075 April 2008£300,000
6 April 20065 April 2007£285,000
6 April 20055 April 2006£275,000
6 April 20045 April 2005£263,000
6 April 20035 April 2004£255,000
6 April 20025 April 2003£250,000
6 April 20015 April 2002£242,000
6 April 20005 April 2001£234,000
6 April 19995 April 2000£231,000
6 April 19985 April 1999£223,000
6 April 19975 April 1998£215,000
6 April 19965 April 1997£200,000
6 April 19955 April 1996£154,000
10 March 19925 April 1995£150,000
6 April 19919 March 1992£140,000
6 April 19905 April 1991£128,000
6 April 19895 April 1990£118,000
15 March 19885 April 1989£110,000
17 March 198714 March 1988£90,000
18 March 198616 March 1987£71,000
‘Capital Transfer Tax’ (IHT thresholds) – 17 March 1986 back to 13 March 1975 for England, Wales, Scotland and Northern Ireland
FromToIHT Threshold /nil rate band
6 April 198517 March 1986£67,000
13 March 19845 April 1985£64,000
15 March 198312 March 1984£60,000
9 March 198214 March 1983£55,000
26 March 19808 March 1982£50,000
27 October 197725 March 1980£25,000
13 March 197526 October 1977£15,000
‘Estate Duty’ (IHT thresholds) – 12 March 1975 back to 16 August 1914 for England, Wales and Scotland
FromToIHT Threshold /nil rate band
22 March 197212 March 1975£15,000
31 March 197121 March 1972£12,500
16 April 196930 March 1971£10,000
4 April 196315 April 1969£5,000
9 April 19623 April 1963£4,000
30 July 19548 April 1962£3,000
10 April 194629 July 1954£2,000
16 August 19149 April 1946£100
‘Estate Duty’ (IHT thresholds) – 12 March 1975 back to 16 August 1914 for Northern Ireland only
FromToIHT Threshold /nil rate band
22 March 197212 March 1975£15,000
5 May 197121 March 1972£12,500
4 June 19694 May 1971£10,000
22 May 19633 June 1969£5,000
4 July 196221 May 1963£4,000
1 November 19543 July 1962£3,000
29 August 194631 October 1954£2,000
16 August 191428 August 1946£100

IHT Thresholds – historic.

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