Nil-Rate Band

The Nil-Rate Band (NRB) is the threshold below which an estate does not incur Inheritance Tax. If the value of the estate is below this amount, or if exemptions apply, no tax is due. The threshold can be transferred between spouses or civil partners.

Legal Reference:

• Outlined in the Inheritance Tax Act 1984.
• As of the current tax year 2025/26, the NRB is £325,000 per individual. Transfers between spouses or civil partners are 100% exempt from IHT, and any unused NRB can be passed on to the surviving spouse.

Sources:

• Wikipedia – https://en.wikipedia.org/wiki/Nil_rate_band
• Wikidata – https://www.wikidata.org/wiki/Q7036811
• Gov.uk – https://www.gov.uk/inheritance-tax
• Knowledge Graph – https://www.google.com/search?kgmid=/m/03yn93c
• DBpedia – http://dbpedia.org/resource/Nil_rate_band
• Product Ontology – http://www.productontology.org/id/Nil-rate_band