In more detail
- Your allowances: £325,000 for everyone, plus up to £175,000 more if your home goes to children or grandchildren. Married couples and civil partners can pass on unused allowances, so a couple can leave up to £1 million tax-free.
- The rate: 40% on the part of the estate above your allowances.
- What doesn’t count: death-in-service benefits from a job.
- Income tax too: if you die aged 75 or over, whoever inherits usually also pays income tax on what they take out of the pension.
Until April 2027, most pensions are left out of your estate, which is why many people with large pension pots will be affected for the first time.
Related questions
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See everything that’s changing in April 2027.
Sources
Last checked against GOV.UK: 9 October 2026