Inheritance tax nil rate band

The amount of a chargeable transfer (www.practicallaw.com/9-382-5589) on which inheritance tax (www.practicallaw.com/3-382-5648) (IHT) is charged at 0% (that is, on which there is no IHT to pay).

For more information, see Practice note, Inheritance tax: overview: The nil rate band (www.practicallaw.com/3-383-5652). For current and historic values of the nil rate band, see Practice note, Tax data: inheritance tax: Nil rate band (www.practicallaw.com/6-385-5460).

The nil rate band will be separate from, and in addition to, the Settlement nil rate band (www.practicallaw.com/7-574-5949) that the government proposes to introduce in the Finance Bill 2015 for the purpose of calculating ten-year anniversary and exit charges in relevant property trusts (www.practicallaw.com/0-382-6277). The nil rate band, rather than the settlement nil rate band, will continue to apply for the purpose of calculating IHT charges on gifts to trusts that are chargeable transfers in the settlor's lifetime or on death. For more information, see Legal update, IHT charges in relevant property trusts: third consultation proposes settlement nil rate band (www.practicallaw.com/8-570-5306) and Private client tax legislation tracker 2013-14: Simplifying IHT charges in relevant property trusts (www.practicallaw.com/6-534-6531).

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