Inheritance Tax thresholds to be frozen for 2028 to 2030

HM Revenue & Customs published a tax information and impact note on 30 October 2024 confirming that the Inheritance Tax nil-rate band and residence nil-rate band thresholds will remain at their current levels for the tax years 2028 to 2029 and 2029 to 2030¹.

The measure fixes both the tax-free thresholds and the residence nil-rate band taper at their current levels for those two tax years¹. The note states that qualifying estates can continue to pass on up to £500,000, and that the qualifying estate of a surviving spouse or civil partner can continue to pass on up to £1 million, without an Inheritance Tax liability¹.

The note describes itself as being about the nil-rate band and residence nil-rate band thresholds for the two tax years¹. It was published on 30 October 2024¹.

The document does not set out the cash value of the nil-rate band or the residence nil-rate band itself, beyond the £500,000 and £1 million figures for qualifying estates¹. It also does not state the Inheritance Tax rate, the taper threshold at which the residence nil-rate band begins to be withdrawn, or the position for tax years after 2029 to 2030. Those details have not been reported in this note¹.

Why it matters for households

Inheritance Tax is charged on the value of an estate above the available thresholds. By holding the thresholds at their current levels for 2028 to 2029 and 2029 to 2030, the point at which an estate starts to become liable does not rise in cash terms over those years¹.

The practical effect is that where asset values grow, for example through house price rises or investment growth, more of an estate can fall above the frozen threshold. The note confirms that qualifying estates can continue to pass on up to £500,000, and the qualifying estate of a surviving spouse or civil partner up to £1 million, without an Inheritance Tax liability¹.

The residence nil-rate band taper is also fixed at its current level for the two tax years¹. The note does not give the taper threshold figure, so the income level at which the additional band starts to reduce has not been reported here¹.

Anyone affected is a person with an estate, or the executor or personal representative dealing with one, where the date of death falls in the 2028 to 2029 or 2029 to 2030 tax years. The thresholds for earlier tax years are unchanged by this note, which covers only those two years¹.

What happens next

The thresholds apply from 6 April 2028, as the title of the note indicates, and run through the 2028 to 2029 and 2029 to 2030 tax years¹. No further dates or reviews are set out in the note¹. The position for tax years after 2029 to 2030 has not been reported¹.