Inheritance tax · England & Wales
The nil-rate band (£325,000)
Last reviewed 18 August 2026
The nil-rate band is the threshold below which no inheritance tax is charged. Modest in appearance, it is the foundation on which every other allowance is built.
How much, and for whom
Each individual has a nil-rate band of £325,000. It has been frozen at this level and is set to remain so for some years. Only the value of the estate above the available bands is taxed, at 40%.
Transferable between spouses
Any unused nil-rate band passes to a surviving spouse or civil partner, so a couple can combine two bands — up to £650,000 — before the residence allowance is even considered.
Questions
Is the nil-rate band per person or per estate?+
Per person. Spouses and civil partners can combine their unused bands.
Is £325,000 the probate threshold?+
No — it is the inheritance-tax threshold, not a probate threshold.
Sources. GOV.UK, Inheritance Tax rates and allowances.