Inheritance Tax Act 1984 Schedule 1

Table of rates of tax

Schedule 1 sets out the table of inheritance tax rates, showing the nil-rate band threshold and the main rate of tax applicable to the value of a person's estate.

• The first £325,000 of value (known as the nil-rate band) is taxed at 0%, meaning no inheritance tax is payable on this portion.
• Any value above £325,000 is taxed at a flat rate of 40%.
• A reduced rate of 20% (half the full rate) applies to lifetime transfers, such as chargeable lifetime transfers made during a person's lifetime.
• A reduced rate of 36% applies on death where 10% or more of the net estate is left to charity.