Guidance

Inheritance Tax thresholds and interest rates

Updated 4 August 2023

© Crown copyright 2023

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This publication is available at https://www.gov.uk/government/publications/rates-and-allowances-inheritance-tax-thresholds-and-interest-rates/inheritance-tax-thresholds-and-interest-rates

Inheritance Tax thresholds — from 18 March 1986 to 5 April 2028

From To Threshold (nil rate band)
6 April 2009 5 April 2028 £325,000
6 April 2008 5 April 2009 £312,000
6 April 2007 5 April 2008 £300,000
6 April 2006 5 April 2007 £285,000
6 April 2005 5 April 2006 £275,000
6 April 2004 5 April 2005 £263,000
6 April 2003 5 April 2004 £255,000
6 April 2002 5 April 2003 £250,000
6 April 2001 5 April 2002 £242,000
6 April 2000 5 April 2001 £234,000
6 April 1999 5 April 2000 £231,000
6 April 1998 5 April 1999 £223,000
6 April 1997 5 April 1998 £215,000
6 April 1996 5 April 1997 £200,000
6 April 1995 5 April 1996 £154,000
10 March 1992 5 April 1995 £150,000
6 April 1991 9 March 1992 £140,000
6 April 1990 5 April 1991 £128,000
6 April 1989 5 April 1990 £118,000
15 March 1988 5 April 1989 £110,000
17 March 1987 14 March 1988 £90,000
18 March 1986 16 March 1987 £71,000

Inheritance Tax additional threshold (residence nil rate band) — from 6 April 2017

From To Additional threshold (residence nil rate band)
6 April 2020 5 April 2028 £175,000
6 April 2019 5 April 2020 £150,000
6 April 2018 5 April 2019 £125,000
6 April 2017 5 April 2018 £100,000

Inheritance Tax interest rates from October 1988

Interest rates change from time to time along with market rates. The following table shows interest periods and rates since October 1988.

You can use this information to calculate how much interest is due on an Inheritance Tax payment by using the Inheritance Tax interest calculator.

You can pay your Inheritance Tax in yearly instalments. If you pay too much Inheritance Tax in advance, HMRC will refund any excess money to you plus interest on the amount you’ve overpaid.

This rate of interest is displayed in the interest on repayments column in the following table:

Interest period Interest rate (%) Interest on repayments (%) Days
22 August 2023 to present 7.75% 4.25% —
11 July 2023 to 21 August 2023 7.5% 4% 42
31 May 2023 to 10 July 2023 7% 3.5% 41
13 April 2023 to 30 May 2023 6.75% 3.25% 48
21 February 2023 to 12 April 2023 6.5% 3% 51
6 January 2023 to 20 February 2023 6% 2.5% 46
22 November 2022 to 5 January 2023 5.50% 2% 45
11 October 2022 to 21 November 2022 4.75% 1.25% 42
23 August 2022 to 10 October 2022 4.25% 0.75% 49
5 July 2022 to 22 August 2022 3.75% 0.5% 48
24 May 2022 to 4 July 2022 3.50% 0.5% 41
5 April 2022 to 23 May 2022 3.25% 0.5% 48
21 February 2022 to 4 April 2022 3% 0.5% 43
7 January 2022 to 20 February 2022 2.75% 0.5% 45
7 April 2020 to 6 January 2022 2.60% 0.5% 640
30 March 2020 to 6 April 2020 2.75% 0.5% 8
21 August 2018 to 29 March 2020 3.25% 0.5% 587
21 November 2017 to 20 August 2018 3% 0.5% 273
23 August 2016 to 20 November 2017 2.75% 0.5% 455
29 September 2009 to 22 August 2016 3% 0.5% 2,520
24 March 2009 to 28 September 2009 0% 0% 189
27 January 2009 to 23 March 2009 1% 1% 56
6 January 2009 to 26 January 2009 2% 2% 21
6 November 2008 to 5 January 2009 3% 3% 61
6 January 2008 to 5 November 2008 4% 4% 305
6 August 2007 to 5 January 2008 5% 5% 153
6 September 2006 to 5 August 2007 4% 4% 334
6 September 2005 to 5 September 2006 3% 3% 365
6 September 2004 to 5 September 2005 4% 4% 365
6 December 2003 to 5 September 2004 3% 3% 275
6 August 2003 to 5 December 2003 2% 2% 122
6 November 2001 to 5 August 2003 3% 3% 638
6 May 2001 to 5 November 2001 4% 4% 184
6 February 2000 to 5 May 2001 5% 5% 455
6 March 1999 to 5 February 2000 4% 4% 337
6 October 1994 to 5 March 1999 5% 5% 1,612
6 January 1994 to 5 October 1994 4% 4% 273
6 December 1992 to 5 January 1994 5% 5% 396
6 November 1992 to 5 December 1992 6% 6% 30
6 July 1991 to 5 November 1992 8% 8% 489
6 May 1991 to 5 July 1991 9% 9% 61
6 March 1991 to 5 May 1991 10% 10% 61
6 July 1989 to 5 March 1991 11% 11% 608
6 October 1988 to 5 July 1989 9% 9% 273

‘Capital Transfer Tax’ (Inheritance Tax thresholds) — 13 March 1975 to 17 March 1986 for England, Wales, Scotland and Northern Ireland

From To Threshold (nil rate band)
6 April 1985 17 March 1986 £67,000
13 March 1984 5 April 1985 £64,000
15 March 1983 12 March 1984 £60,000
9 March 1982 14 March 1983 £55,000
26 March 1980 8 March 1982 £50,000
27 October 1977 25 March 1980 £25,000
13 March 1975 26 October 1977 £15,000

‘Estate Duty’ (Inheritance Tax thresholds) — 16 August 1914 to 12 March 1975 for England, Wales and Scotland

From To Threshold (nil rate band)
22 March 1972 12 March 1975 £15,000
31 March 1971 21 March 1972 £12,500
16 April 1969 30 March 1971 £10,000
4 April 1963 15 April 1969 £5,000
9 April 1962 3 April 1963 £4,000
30 July 1954 8 April 1962 £3,000
10 April 1946 29 July 1954 £2,000
16 August 1914 9 April 1946 £100

‘Estate Duty’ (Inheritance Tax thresholds) — 16 August 1914 to 12 March 1975 for Northern Ireland only

From To Threshold (nil rate band)
22 March 1972 12 March 1975 £15,000
5 May 1971 21 March 1972 £12,500
4 June 1969 4 May 1971 £10,000
22 May 1963 3 June 1969 £5,000
4 July 1962 21 May 1963 £4,000
1 November 1954 3 July 1962 £3,000
29 August 1946 31 October 1954 £2,000
16 August 1914 28 August 1946 £100
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