Inheritance Tax (IHT) key measures included in Budget 2021 are as follows:

  • The IHT Nil Rate Band and Residence Nil Rate Band (RNRB) will be frozen at £325,000 and £175,000 respectively until April 2026. 
  • Tapering of the RNRB will continue to start at £2 million.  

Useful guides on this topic

Budget 2021: Subscriber guide
A detailed guide with links to more detail on all the key topics for SMEs and their owners.

IHT: Transferable Nil Rate Band
What is the Transferable Nil Rate Band? Who does it apply to? How do I claim it?

IHT: Main Residence Nil Rate Band (RNRB)
What is the Main Residence Nil Rate Band? When was it introduced? How does it work? Who can claim it?