Guidance

Rates and allowances: Inheritance Tax thresholds and interest rates

Find the Inheritance Tax thresholds (or 'nil rate bands') from 1914, and see changes to Inheritance Tax interest rates from October 1988.

Documents

Details

The attached document is classified by HMRC as guidance and contains information of the different thresholds in use for deaths going back to 1914.

It also shows the changes in Inheritance Tax interest rates from 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.

Published 17 February 2017
Last updated 7 April 2020 + show all updates
  1. The Inheritance Tax interest rate on late payments has decreased from 2.75% to 2.60% with effect from 7 April 2020. The rates for interest on repayments remains unchanged.

  2. The section for Inheritance Tax interest rates from October 1988 has been updated.

  3. The Inheritance Tax interest rate from 21 August 2018 is 3.25% and the interest on repayments is 0.75%.

  4. Inheritance Tax additional threshold/residence nil rate band - from 6 April 2019 amended to show correct figure £175,000

  5. Rates, allowances and duties have been updated for the tax year 2018 to 2019.

  6. The Inheritance Tax interest rate from 21 November 2017 is 3%.

  7. This guidance has been updated to reflect Inheritance Tax threshold effective from 6 April 2017.

  8. First published.