On death, IHT is payable at the rate of 40%* on taxable assets that exceed the Nil Rate Band (NRB) and additional Residential Nil Rate Band (RNRB).
* Since 2012/13, 36% will apply where 10% or more of the deceased person’s net estate is left to charity.
The additional Residence NRB will be reduced by £1 for every £2 if the estate is above £2m (after deducting any liabilities but before reliefs and exemptions).
The current Inheritance tax NRB and RNRB will be frozen until at least 2030/31.
A history of the Inheritance Tax NRB and RNRB is below;
| TAX YEAR | IHT NRB | RNRB |
| 2020/21 – 2026/27 | £325,000 | £175,000 |
| 2019/20 | £325,000 | £150,000 |
| 2018/19 | £325,000 | £125,000 |
| 2017/18 | £325,000 | £100,000 |
| 2009/10 – 2016/17 | £325,000 | |
| 2008/09 | £312,000 | |
| 2007/08 | £300,000 | |
| 2006/07 | £285,000 | |
| 2005/06 | £275,000 | |
| 2004/05 | £263,000 | |
| 2003/04 | £255,000 | |
| 2002/03 | £250,000 | |
| 2001/02 | £242,000 |
For further information;