A single or unmarried person has just one set of allowances — there is no spouse whose unused bands can be transferred. That makes the £325,000 nil-rate band, and the £175,000 residence nil-rate band when a home passes to children, especially important.
Worked example — single estate of £600,000
| Step | Amount |
|---|---|
| Net estate | £600,000 |
| Less nil-rate band | −£325,000 |
| Less residence nil-rate band | −£175,000 |
| Taxable estate | £100,000 |
| Rate | 40.0% |
| Inheritance Tax due | £40,000 |
For context, a married couple able to combine both bands would shelter up to £1,000,000 and pay £0 on the same estate — which is why single people often plan with gifts, charity bequests or the residence band.
The current UK Inheritance Tax rules
| Allowance / rate | Amount | Notes |
|---|---|---|
| Nil-rate band (NRB) | £325,000 | 0% on this slice of every estate |
| Residence nil-rate band (RNRB) | £175,000 | Only when a home passes to direct descendants |
| Taper threshold | £2,000,000 | RNRB falls £1 for every £2 of estate above this |
| Standard rate | 40.0% | On the estate above the available bands |
| Reduced charity rate | 36.0% | If ≥10% of the net estate goes to charity |
A single person can still cut IHT by leaving a home to direct descendants (the £175,000 residence band), making lifetime gifts and surviving 7 years, or leaving 10%+ to charity for the reduced 36% rate.
Sources & as-of
- Nil-rate band, residence nil-rate band, 40% / 36% rates, £2m taper: GOV.UK — Inheritance Tax.
- Bands frozen at these levels until 5 April 2030 (end of tax year 2029-30): GOV.UK — IHT nil-rate bands from 6 April 2028.
- Residence nil-rate band conditions & taper: GOV.UK — Residence nil-rate band.
- Gifts & 7-year taper relief: GOV.UK — Inheritance Tax: gifts.
- Data as-of 2026-06-18. This is a planning estimate, not tax advice — confirm your figures with HMRC or a qualified solicitor / financial adviser. Inheritance Tax applies UK-wide (there are no devolved IHT rates).