What is the nil rate band for inheritance tax?

The nil rate band for inheritance tax is set at £325,000. This means that when an individual passes away, their estate can be valued up to this amount without incurring any inheritance tax. Estates exceeding this threshold are then subject to a tax rate on the amount above the nil rate band.

The nil rate band has remained stable over the years, providing a significant threshold that allows many individuals to plan their estates without worrying about inheritance tax liability. Understanding this threshold is vital for effective estate planning, as it helps in calculating the potential tax exposure and organizing asset transfers to minimize tax obligations upon death.

The other figures presented do not align with the current nil rate band policy, which is critical for anyone involved in inheritance tax assessments or estate planning in the UK.