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What are the Inheritance Tax rates?

The following tax facts should be viewed as an indication of the rates and allowances available and relate to the current tax year (2020/2021) unless stated otherwise. Tax law is notoriously complex and we cannot replicate every rule, nuance or exemption here. Therefore you should not make, or refrain from making, any decisions based on this information alone. If you are in any doubt as to the suitable course of action we recommend you seek tax advice. Remember tax rules can change and depend on your personal circumstances.

Announced IHT rates until 2020/21

Value of estate Tax rate
£1 - £325,000 (known as IHT threshold or nil rate band) 0%
Over £325,000 40%
Value of estate Tax rate
£1 - £325,000 (known as IHT threshold or nil rate band) 0%
Over £325,000 40%

Tax year Residence nil rate band
2017/18 £100,000
2018/19 £125,000
2019/20 £150,000
2020/21 £175,000

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