• IHT may be payable when an individual's estate is worth more than the IHT nil rate band when they die.
• Lifetime and death transfers between UK domiciled spouses are exempt from IHT.
• A further nil rate band of £175,000 may be available in relation to current or former residences.
• The IHT threshold available on death may be increased for surviving spouses as there may have been a nil rate band not used, or not fully used, on the first death.
• There are reliefs for some business and farming assets which reduce their value for IHT purposes.
• IHT may also be payable on gifts made in an individual's lifetime but within seven years of death.
• Some lifetime gifts are exempt.
• Transfers of assets into trust made in an individual's lifetime may be subject to an immediate charge but at lifetime rates.
• There are also charges on some trusts.

IHT rates and nil rate band 2022/23 and 2021/22

IHT reliefs for lifetime gifts

IHT - reduced charge on gifts within seven years of death