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HMRC internal manual

Inheritance Tax Manual

Tax payable on taking out of grant: Inheritance tax rates

For events occurring on or after 15 March 1988 tax is charged at 40% on amounts above the threshold (i.e. the upper limit of the nil rate band), which is

 

### Deaths (all dates inclusive) ### Threshold
   
15 Mar 1988 to 5 Apr 1989 £110,000
6 Apr 1989 to 5 Apr 1990 £118,000
6 Apr 1990 to 5 Apr 1991 £128,000
6 Apr 1991 to 9 Mar 1992 £140,000
10 Mar 1992 to 5 Apr 1995 £150,000
6 Apr 1995 to 5 Apr 1996 £154,000
6 Apr 1996 to 5 Apr 1997 £200,000
6 Apr 1997 to 5 Apr 1998 £215,000
6 Apr 1998 to 5 Apr 1999 £223,000
6 Apr 1999 to 5 Apr 2000 £231,000
6 Apr 2000 to 5 Apr 2001 £234,000
6 Apr 2001 to 5 Apr 2002 £242,000
6 Apr 2002 to 5 Apr 2003 £250,000
6 Apr 2003 to 5 Apr 2004 £255,000
6 Apr 2004 to 5 Apr 2005 £263,000
6 Apr 2005 to 5 Apr 2006 £275,000
6 Apr 2006 to 5 Apr 2007 £285,000
6 Apr 2007 to 5 Apr 2008 £300,000
6 Apr 2008 to 5 Apr 2009 £312,000
6 Apr 2009 to £325,000

 

The same threshold applies for immediately chargeable transfers (IHTM14531) taxed at half death rates (20%).

Prior to 15 March 1988 Inheritance Tax and, before 18 March 1986 its predecessor Capital Transfer Tax, was charged at a graduated scale of rates.

The amount of the nil rate band may be increased by as much as 100% if Transferable Nil Rate Band (TNRB) can be claimed where a surviving spouse or civil partner dies on or after 9 October 2007 (IHTM43001).

For deaths on or after 6 April 2017 an additional Residence Nil Rate Band (RNRB) may also be available (IHTM46001). This can only be used against the death estate.

For deaths on or after 6 April 2012, a reduced rate of tax on the death estate applies where at least 10% of a person’s net estate is left to charity (IHTM45001).