Machins Solicitors LLP
Leading Solicitors in Bedfordshire, Hertfordshire & Buckinghamshire
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Inheritance tax

Inheritance tax (IHT) is the tax which is payable when a person dies. IHT is not payable in all situations. Below is a brief outline of some of the basic rules in relation to IHT

Standard Nil Rate Band

If H dies first leaving everything to W his nil rate band is unused on his death, and on the death of W the nil rate band available for W will be increased by 100%. As it stands, this would mean that £650,000 nil rate band would be available on the death of W. The nil rate band available on the second death is increased by the proportion of the unused nil rate band on the first death.

Main Residence Nil Rate Band


There are reliefs from IHT for some of the following types of property; agricultural property, ausiness property and woodland and heritage assets. Accordingly, property that falls into these categories can be extremely useful when carrying out tax and estate planning.