HMRC Inheritance Tax: Customer Guide
Summary of excepted estates limits
For deaths before 1 April 1981, there were no excepted estates and a full inheritance tax account is required in all cases. You can contact our Probate and Inheritance Tax helpline to obtain the correct form.
The following tables summarise the limits for excepted estates from 1 April 1981.
These are estates where there is no inheritance tax to pay because the gross value of the estate is below the inheritance tax threshold. The table below shows the limits for low value excepted estates where the deceased was domiciled in the UK and had not made any gifts with reservation.
From 1 September 2006, an estate cannot be an excepted estate if the deceased benefited from an alternatively secured pension fund.
‘Specified transfers’ are lifetime gifts made by the deceased consisting of cash, quoted shares and securities, and (from 6 April 2002) straightforward gifts to an individual of land and furnishings and contents enjoyed with that land, but not gifts into trust. For an estate to be an excepted estate, the only types of gifts which the deceased can have made during their lifetime are specified transfers up to the maximum amounts shown in the table.
| Deaths between (all dates inclusive) | Maximum gross value | Maximum value of property outside the UK | Maximum value of specified transfers | Maximum value of trust assets in a single trust |
|---|---|---|---|---|
| 1 Apr 1981 to 31 Mar 1983 |
£25,000 |
£1,000 |
£0 |
£0 |
| 1 Apr 1983 to 31 Mar 1987 |
£40,000 |
£2,000 |
£0 |
£0 |
| 1 Apr 1987 to 31 Mar 1989 |
£70,000 |
£10,000 |
£0 |
£0 |
| 1 Apr 1989 to 31 Mar 1990 |
£100,000 |
£15,000 |
£0 |
£0 |
| 1 Apr 1990 to 31 Mar 1991 |
£115,000 |
£15,000 |
£0 |
£0 |
| 1 Apr 1991 to 5 Apr 1995 |
£125,000 |
£15,000 |
£0 |
£0 |
| 6 Apr 1995 to 5 Apr 1996 |
£145,000 |
£15,000 |
£0 |
£0 |
| 6 Apr 1996 to 5 Apr 1998 |
£180,000 |
£30,000 |
£50,000 |
£0 |
| 6 Apr 1998 to 5 Apr 2000 |
£200,000 |
£50,000 |
£75,000 |
£0 |
| 6 Apr 2000 to 5 Apr 2002 |
£210,000 |
£50,000 |
£75,000 |
£0 |
| 6 Apr 2002 to 5 Apr 2003 |
£220,000 |
£75,000 |
£100,000 |
£100,000 |
| 6 Apr 2003 to 5 Apr 2004 |
£240,000 |
£75,000 |
£100,000 |
£100,000 |
| 6 Apr 2004 to 31 Aug 2006 |
IHT threshold* |
£75,000 |
£100,000 |
£100,000 |
| 1 Sep 2006 to |
IHT threshold* |
£100,000 |
£150,000 |
£150,000 |
For an excepted estate from 6 April 2004, the Inheritance tax (IHT) threshold means the amount above which IHT is payable. If the death was after 5 August and before 6 April in any one tax year, you should use the threshold that applied at the date of death.
If the deceased died after 5 April but before 6 August in any one tax year and the grant of representation is applied for before 6 August of that year, the threshold which applies for an excepted estate is the one from the tax year before that in which the deceased died.
A list of thresholds for each year (PDF 102K)
Exempt estates
From 6 April 2004 an exempt estate is a category of excepted estate where there is no tax to pay because the chargeable estate does not exceed the inheritance tax threshold because either spouse or civil partner exemption and/or charity exemption is available to deduct against the assets.
From 1 September 2006, an estate cannot be an excepted estate if the deceased benefited from an alternatively secured pension fund.
| Deaths between (all dates inclusive) | Maximum gross value | Maximum value of property outside the UK | Maximum value of specified transfers | Maximum value of trust assets in a single trust |
|---|---|---|---|---|
| 6 Apr 2004 to 31 Aug 2006 |
£1,000,000 |
£75,000 |
£100,000 |
£100,000 |
| 1 Sep 2006 to |
£1,000,000 |
£100,000 |
£150,000 |
£150,000 |
Foreign domiciliaries
Foreign domiciliaries are excepted estates where the UK assets consist only of cash, or quoted shares or securities passing by Will, intestacy or survivorship and where the deceased was domiciled outside the United Kingdom throughout their lifetime.
| Deaths (all dates inclusive) | Maximum gross value of UK assets | Notes |
|---|---|---|
| Up to 5 Apr 2002 | No excepted estates | Full IHT account has to be delivered |
| 6 Apr 2002 to 31 Aug 2006 | £100,000 | Deceased must never have been domiciled or deemed domiciled in the UK |
| 1 Sep 2006 to | £150,000 | Deceased must never have been domiciled or deemed domiciled in the UK |
Which form do I use for an excepted estate?
To obtain the correct form, you can download the form from the page entitled: HMRC Applying for Probate
Or telephone our Probate and Inheritance Tax helpline.
