Inheritance Tax

The inheritance tax (IHT) nil rate band is available on top of the existing inheritance tax nil rate band of £325,000, so that in 2020/21 an individual will potentially be able to leave £500,000 free of inheritance tax, and the rates of IHT payable on death remain unchanged at 40% or 36% where at least 10% of the net estate is left to charity.

The government will consult on extending the existing IHT exemption for the estates of members of the armed forces, whose death is caused or hastened by injury while on active service, to members of the emergency services.