The spouse and civil partner exemption

Last reviewed 18 August 2026

Of all the reliefs, this is the plainest and the most valuable: what passes between spouses passes untaxed, and what one does not use, the other inherits.

Full exemption, and the transfer

Assets left to a spouse or civil partner are fully exempt from inheritance tax, whatever their value. Better still, any unused nil-rate band and residence nil-rate band transfer to the survivor, so that on the second death a couple can pass on up to £1 million before tax — two nil-rate bands of £325,000 plus two residence bands of up to £175,000, where a home goes to direct descendants.

The point to watch

The exemption is for spouses and civil partners, not for unmarried partners — however long the relationship. A cohabiting partner enjoys no exemption and no transfer of allowances, which is one reason a will (and, for larger estates, planning) matters so much for them.

Sources. GOV.UK, Inheritance Tax: spouse/civil partner exemption and transferable nil-rate band.