Guidance

Rates and allowances: Inheritance Tax thresholds and interest rates

Find the Inheritance Tax thresholds (or 'nil rate bands') from 1914, and see changes to Inheritance Tax interest rates from October 1988.

From:
HM Revenue & Customs
Published
17 February 2017
Last updated
2027 NovemberJanuary 20242025 — See all updates

Documents

Inheritance Tax thresholds and interest rates

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Details

The document is classified by HMRC as guidance and contains information of the different thresholds in use for deaths going back to 1914.

It also shows the changes in Inheritance Tax interest rates from October 1988.

You can use this information to work out how much interest is due on an Inheritance Tax payment by using the Inheritance Tax interest calculator.

Updates to this page

Published 17 February 2017
Last updated 2027 NovemberJanuary 2024 2025 + show all updates

  1. The 20 August 2024 to 25 November 2025 date has been amended to 20 August 2024 to 25 November 2024 in the 'Inheritance Tax interest rates from October 1988' table.

  2. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 7.25% for late payments and the interest rate of 3.75% on repayments from 26 November 2024.

  4. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 7.50% for late payments and the interest rate of 4.00% on repayments from 20 August 2024.

  6. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 7.75% for late payments and the interest rate of 4.25% on payments from 22 August 2023.

  8. The Inheritance Tax interest rates have been updated.

  10. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 7% for late payments and the interest rate of 3.5% on payments from 31 May 2023.

  12. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 6.75% for late payments and the interest rate of 3.25% on payments from 13 April 2023.

  14. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 6.5% for late payments and the interest rate of 3% on payments from 21 February 2023.

  16. Updated to show the Inheritance Tax threshold and additional threshold (residence nil rate band) will remain at their present levels until 5 April 2028.

  18. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 6% for late payments and the interest rate of 2.5% on payments from 6 January 2023.

  20. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 5.50% for late payments and the interest rate of 2% on repayments from 22 November 2022.

  22. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 4.75% for late payments and the interest rate of 1.25% on payments from 11 October 2022.

  24. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 4.25% for late payments and the interest rate of 0.75% on payments from 23 August 2022.

  26. The interest rate for late payments changed from 3.5% to 3.75% on 5 July 2022.

  28. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate of 3.5% from 24 May 2022.

  30. The 'Inheritance Tax interest rates from October 1988' table has been updated with the interest on repayments rate from 5 April 2022.

  32. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate from 5 April 2022.

  34. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate from 21 February 2022.

  36. The 'Inheritance Tax interest rates from October 1988' table has been updated with the new interest rate from 4 January 2022.

  38. The Inheritance Tax interest rate on late payments has decreased from 2.75% to 2.60% with effect from 7 April 2020. The rates for interest on repayments remains unchanged.

  40. The section for Inheritance Tax interest rates from October 1988 has been updated.

  42. The Inheritance Tax interest rate from 21 August 2018 is 3.25% and the interest on repayments is 0.75%.

  44. Inheritance Tax additional threshold/residence nil rate band - from 6 April 2019 amended to show correct figure £175,000

  46. Rates, allowances and duties have been updated for the tax year 2018 to 2019.

  48. The Inheritance Tax interest rate from 21 November 2017 is 3%.

  50. This guidance has been updated to reflect Inheritance Tax threshold effective from 6 April 2017.

  52. First published.

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