Inheritance Tax thresholds and how to plan ahead

Inheritance Tax thresholds have stayed fixed for a long period while property and asset values have risen, which has pulled many ordinary estates into scope without people realising.

The nil-rate band

Every estate has a nil-rate band below which no Inheritance Tax is due, and unused allowance can generally be transferred between spouses or civil partners, effectively doubling the threshold for the second death.

The residence nil-rate band

An additional allowance applies when a main residence is passed to direct descendants, though it tapers away for larger estates — this is an area where the detail genuinely changes the outcome.

Why property values matter

Because thresholds haven't kept pace with property price growth in many areas, a family home alone can now push an estate close to or over the combined threshold, even without significant other assets.

Our advice

We review your estate against current thresholds and flag whether planning is worth considering — the earlier this conversation happens, the more options are realistically available.