Inheritance Tax - what is the current Nil Rate band?
The nil-rate band is the term given to describe that part of your estate that is below the Inheritance Tax threshold; in other words, that part of your estate that is free of Inheritance Tax.
The nil-rate band for the current tax year, 2010/2011 is £325,000. (See HM Revenue & Customs)
On your death, if your estate exceeds the nil-rate band, Inheritance Tax is charged at a flat rate of 40% on the whole of the excess, without upper limit. (This includes life insurance, if not in trust.) |
Due to a pre-budget statement made by the Chancellor of the Exchequer on 9 October 2007, if your spouse died before that date (even years earlier) their nil-rate band could be transferred to you.
