Inheritance Tax and probate
Inheritance Tax is charged at 40% on the value of an estate above the available allowances. The nil-rate band is £325,000 and a residence nil-rate band of up to £175,000 may apply where a home passes to direct descendants. Unused allowances can transfer from a spouse or civil partner, so many estates pay nothing.
Jurisdiction: England & Wales. Last reviewed 13 August 2026.
In this section
The allowances
| Allowance | Amount | Applies when |
|---|---|---|
| Nil-rate band | £325,000 | Every estate |
| Residence nil-rate band | Up to £175,000 | A home passes to children or other direct descendants |
| Transferred nil-rate band | Up to a further £325,000 | A spouse or civil partner died without using theirs |
| Transferred residence band | Up to a further £175,000 | The same, for the residence band |
The residence nil-rate band tapers away where the estate exceeds £2,000,000. Figures last checked 6 August 2026.
Exemptions that remove the charge entirely
- Anything passing to a surviving spouse or civil partner
- Anything passing to a qualifying charity
- Certain gifts to political parties and national institutions
Lifetime gifts
Gifts made in the 7 years before death may be brought back into the calculation, with taper relief reducing the tax on older gifts. Small gifts, the annual exemption and regular gifts out of surplus income are treated differently. If substantial gifts were made, this is a point to take advice on.
Excepted estates and the full account
Most estates are excepted: no full account is needed and the figures are reported as part of the probate application. A full IHT400 account is needed where tax is payable or the estate falls outside the excepted conditions.
The deadline that costs money
Inheritance Tax is due by the end of the sixth month after the month of death, and interest runs from that date whether or not the grant has issued. The direct payment scheme and the ten-year instalment option for property exist precisely because of this.Tax is where self-help stops
Where tax is actually payable, or reliefs and trusts are in play, instruct a solicitor or an accountant. Our free checker will say so plainly.Frequently asked questions
- How much can you inherit without paying Inheritance Tax?
- The nil-rate band is £325,000, plus up to £175,000 where a home passes to direct descendants, and unused allowances may transfer from a deceased spouse — so a couple's estate can often pass a substantial sum tax free.
- Is Inheritance Tax paid before or after probate?
- Tax generally has to be dealt with before the grant issues, which is why the direct payment scheme and instalment options exist.
- Do I pay Inheritance Tax on money left to my spouse?
- No. Transfers between spouses and civil partners are exempt.
Dealing with a straightforward estate yourself?
Our free probate checker helps you work out whether this estate appears suitable for a self-help route. It asks about jurisdiction, disputes and complexity, takes a few minutes, and needs no account.
£349 one-off service fee if you go ahead. Court fee and any Inheritance Tax are paid separately.
Sources
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