Inheritance tax (IHT) may be payable if the total value of the deceased’s estate exceeds the nil-rate band threshold of £325,000.
However, an additional Residence Nil-Rate Band (RNRB) of up to £175,000 applies when a main home is left to a direct descendant, such as a child or grandchild, bringing the effective threshold to £500,000 for many families.
Importantly, any IHT due must be paid (or a payment arrangement agreed with HMRC) before the Grant of Probate is issued. This can affect the timeline for selling the property.
Not everyone will need to pay IHT; it depends on the total estate value, available allowances, and whether any reliefs apply. See our full Inheritance Tax FAQ guide for a detailed breakdown