The Nil Rate Band is the value of an estate that can be passed on free of Inheritance Tax. Any value above this band is generally taxed at the standard Inheritance Tax rate, unless a relief or exemption applies.
Transferring an unused band
If a person's estate does not use all of their Nil Rate Band, for example because everything was left to a spouse or civil partner, the unused percentage can usually be transferred to increase the band available on the second death.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.