What is the inheritance tax threshold in the UK?

The standard inheritance tax threshold is 325000 pounds. Estates above this are taxed at 40 percent on the excess.

Do I need to pay inheritance tax before probate?

Yes. HMRC requires inheritance tax to be paid, or at least a payment plan agreed, before a grant of probate is issued.

Is there inheritance tax between husband and wife in the UK?

No. Assets passed between spouses or civil partners are completely exempt from inheritance tax.

Inheritance Tax UK

Inheritance Tax (IHT) is a tax on the estate of someone who has died. As an executor, you are responsible for calculating any IHT due and paying it to HMRC before probate can be granted.

The nil-rate band

The standard inheritance tax threshold – called the nil-rate band – is £325,000. Estates valued below this pay no IHT. Estates above are taxed at 40% on the excess.

Residence nil-rate band

If the deceased passed their main home to direct descendants (children, grandchildren), an additional £175,000 allowance applies. Combined with the standard nil-rate band, this means up to £500,000 can pass tax-free.

Exemptions

Spouse or civil partner: Everything passed to a spouse or civil partner is exempt
Charities: Gifts to registered charities are exempt
Business property relief: Some business assets qualify for 50% or 100% relief
Agricultural property relief: Farmland may qualify for relief

Paying HMRC

IHT must be paid before probate is granted. You can pay from your own funds and reclaim from the estate, or arrange a loan. For property, you can pay in instalments over 10 years.

How SafeKept helps

SafeKept helps you track asset values as you gather information from banks and institutions. Export your data to help complete HMRC forms accurately.