Question 1

What is the UK inheritance tax rate for 2024/25?

Accepted Answer

The UK inheritance tax rate is 40% on estates above the nil-rate band of £325,000. The rate reduces to 36% if 10% or more of the estate is left to charity.

Question 2

What is the residence nil-rate band?

Accepted Answer

The residence nil-rate band is an additional £175,000 allowance available when you leave your main residence to direct descendants (children or grandchildren).

Question 3

Who pays inheritance tax?

Accepted Answer

Inheritance tax is typically paid by the executors of the estate from the estate's assets before distribution to beneficiaries. Payment is usually due within 6 months of death.

UK Inheritance Tax Guides