| Nil rate band (NRB) | £325,000 | £325,000 | 0% within available NRB |
| Residence nil rate band (RNRB) | £175,000 | £175,000 | Qualifying residence inherited by direct descendants |
| Maximum individual NRB + RNRB | £500,000 | £500,000 | Subject to residence and taper conditions |
| Maximum transferable NRB for couple | £650,000 | £650,000 | Unused NRB may transfer to surviving spouse/civil partner |
| Maximum combined NRB + RNRB for couple | £1,000,000 | £1,000,000 | Subject to full eligibility and transferable allowances |
| RNRB taper threshold | £2,000,000 | £2,000,000 | RNRB reduced £1 for each £2 above threshold |
| Standard death estate IHT rate | 40% | 40% | Applies to taxable value above allowances |
| Reduced charitable death estate rate | 36% | 36% | Qualifying gifts of at least 10% of relevant net estate |
| Lifetime chargeable transfer rate | 20% | 20% | Typically lifetime transfers to relevant property trusts |
| Potentially exempt transfers (PETs) | No monetary limit | No monetary limit | Normally exempt if donor survives 7 years; gifts with reservation rules apply |
| PET taper: death within 3 years | 40% | 40% | Only tax on chargeable gifts; NRB must first be exceeded |
| PET taper: death 3–4 years | 32% | 32% | Taper reduces tax, not value of gift |
| PET taper: death 4–5 years | 24% | 24% | Taper reduces tax, not value of gift |
| PET taper: death 5–6 years | 16% | 16% | Taper reduces tax, not value of gift |
| PET taper: death 6–7 years | 8% | 8% | Taper reduces tax, not value of gift |
| PET taper: 7+ years | 0% | 0% | Subject to exceptions including gifts with reservation |
| Annual gift exemption | £3,000 | £3,000 | Per donor, per tax year |
| Unused annual exemption carry-forward | 1 tax year | 1 tax year | Previous year only |
| Small gifts exemption | £250 | £250 | Per recipient per tax year; cannot combine with other gift allowance for same recipient |
| Wedding/civil partnership gift — child | £5,000 | £5,000 | Per donor; conditions apply |
| Wedding/civil partnership gift — grandchild | £2,500 | £2,500 | Includes great-grandchild |
| Wedding/civil partnership gift — other person | £1,000 | £1,000 | Per donor |
| Normal expenditure out of income | No fixed limit | No fixed limit | Must satisfy regularity, income and standard-of-living tests |
| Spouse/civil partner exemption | Generally unlimited | Generally unlimited | Special limits can apply depending on long-term UK residence status |
| Charity and qualifying political party gifts | Exempt | Exempt | Qualifying recipients and conditions |
| Agricultural and Business Relief — 100% allowance | £2,500,000 | Not capped at £2.5m | 2026/27 combined qualifying 100% relief allowance; other conditions apply |
| Agricultural/Business Relief above allowance | 50% relief | Generally 100% or 50% | Depends on asset and eligibility; special rules for trusts |
| Relevant property trust ten-year charge | Up to 6% | Up to 6% | Periodic charge; depends on available NRB |
| Relevant property trust exit charge | Up to 6% | Up to 6% | Effective rate depends on timing and trust history |
| Unmarried partners | No spouse exemption | No spouse exemption | Joint ownership and wills affect succession; no automatic spouse IHT exemption |
