ABC of IHT

Nil rate band This is the value of your estate at death on which IHT is charged at a rate of 0%. The value of your estate includes any assets held in trust and gifts made within seven years of death. Where this value is greater than the NRB (£300,000 for 2007-08), then tax will be due on the excess at a rate of 40%. Everyone is entitled to a nil rate band although, until recently, married couples would lose the use of the NRB of the first of them to die if the deceased's estate passed outright to their spouse. Thanks to changes made by the Chancellor in his Pre Budget report on 9 Octo...