Inheritance tax, or IHT, is a tax payable by your estate when you die. Not everyone in the UK has to pay IHT – it is only due if the value of your estate, including any assets held in trust and gifts made within seven years of your death, exceeds the IHT exemption threshold – called the nil-rate band – in force at the date of your death. Tax is due on the amount that exceeds that threshold.

Band 2009–10 and 2010–11
Nil-rate band £325,000
40% rate band £325,001 or more