How Much Inheritance Tax Do I Pay in 2026?
IHT is charged at 40% on the value of an estate above the nil-rate band. For 2025/26 and 2026/27, the nil-rate band is £325,000 and the residence nil-rate band is £175,000, both frozen until 2031.
This article includes worked examples for different estate sizes, married couples using transferable allowances, and estates affected by the April 2026 BPR and APR changes for business owners and farmers.