General information only, not advice for your circumstances. Please talk to us before acting.
Allowances
- Nil-rate band: £325,000
- Residence nil-rate band: £175,000, when a home passes to direct descendants
- Unused bands can pass to a surviving spouse or civil partner
Exempt gifts
- £3,000 a year annual exemption
- Small gifts of up to £250 per person
- Gifts to a spouse or civil partner, and to charities
- Regular gifts out of surplus income
The seven-year rule
Other gifts to individuals are usually free of inheritance tax if you survive for seven years, with tapering relief on tax due on gifts made between three and seven years before death.
Pensions
From 6 April 2027 most unused pension funds will be included in the estate. Review your plans now.
