The Inheritance Tax Threshold from 1914 to 5th April 2028 (or Inheritance Tax free allowance) is the amount up to which an estate will have no Inheritance Tax to pay. Information on the Transferable Nil Rate Band is HERE. The Property-related allowance also needs to be taken into account in recent years, as does the Transferable one. If you need help sorting out Inheritance Tax after a death, contact us. Too many people overpay IHT! Unless you are a professional, the fact that you are looking at this page indicates you probably need help!It has to be said that many families underpay Inheritance Tax because they don’t realise how the gifting rules work, or the effect of lifetime gifts or what is a gift with reservation of benefit. The most disastrous for many is simply transferring your home into the children’s names – so it is subject to lifetime and death IHT, Capital Gains Tax on sale and children’s divorces and is often uninsured because people don’t understand how insurance works! To cap it all, the Local Authority will almost certainly refuse to contribute to any care fees! EXPENSIVE. Contact us and we’ll find you an adviser.HMRC opened 2,029 IHT investigations between April and November 2023 alone, recovering £172 million. This is part of a larger trend – with over 3,100 investigations and £251 million recovered in the previous tax year. Interest is at 7.75%.
The penalties for getting Inheritance TAx returns wrong are severe, and there are allowances and savings which may not be obvious to even to every probate practitioner. Not to mention the IHT400 forms can be up to 96 pages long! 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 have 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 other’s 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. The Residential allowance is an addition to the tax-free IHT amount where applicable.
Probate Quotes Probate Disputes
Here are the IHT thresholds in use for deaths going back to 1914.
| To | IHT /nil rate band | |
|---|---|---|
| 6 April 2009 | 5 April 2028 | £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 |
Back to Main Inheritance Tax page.
May 2021.