Inheritance law and estate taxes in the UK

If you are a foreigner living in the UK (or if you own property there), you must consider how British inheritance law affects you and your heirs. In some cases, it may be beneficial to write a last will and testament to protect your assets in the event of your death – although conditions apply when writing wills.

This article explains whether the UK’s inheritance law applies to your estate, or the law of your home country, and gives details on how much tax applies after meeting the UK inheritance tax threshold:

Inheritance and succession laws in the UK

Who is subject to UK inheritance law?

There is no single rule that makes all UK residents subject to UK succession law on all worldwide assets. For cross-border estates, domicile remains important when deciding which succession rules apply to movable property, while land is generally governed by the law of the country where it is located.

Inheritance Tax is a separate question. From 6 April 2025, domicile-based rules for overseas assets were replaced by long-term UK residence rules. A transfer can be within the scope of UK Inheritance Tax if the person is a long-term UK resident or if the asset is situated in the UK.

Which country’s laws does your estate depend on?

The UK did not participate in the EU Succession Regulation (EU No 650/2012), even while it was an EU member, so Brexit did not change the UK’s status under that regulation. The regulation applies in participating EU countries to deaths on or after 17 August 2015.

Where the EU Succession Regulation applies, the law of the deceased’s habitual residence generally governs the succession as a whole, but a person can choose the law of a country whose nationality they hold. This can still affect a UK-connected estate being handled in a participating EU country, so consider specialist legal advice for cross-border estates.

Who inherits your estate in the UK?

Inheritance laws in the UK vary across the constituent countries. In England and Wales, there is no forced heirship, and people are free to leave their property to whomever they wish by making a last will and testament in the UK.

However, in Scotland, a surviving spouse and children have a statutory claim to parts of the estate. If the deceased had a spouse and children, both parties can receive a third each (one-third split equally between children if more than one) of the net movable assets (everything excluding property and land). Where there is only a spouse or children, their entitlement is 50% of net movable assets.

Writing a will in the UK

According to Which?, less than four in ten adults in the UK have a will, based on the 2025 National Wills Report. Be aware that without a valid will, an estate is divided according to the relevant intestacy rules.

Such rules may not always be in accordance with your wishes; for instance, unmarried partners do not automatically receive a share of any estate.

However, it’s fairly straightforward to create a will in the UK. You can do so with the help of a solicitor, certain charities, or you can even legally write your own will. Alternatively, there are a growing number of online platforms that can help you with this delicate process.

For more information on what you need to prepare, read our expert guide to planning wills and estates in the UK.

What if there is no will?

If someone dies without leaving a valid will, intestacy law determines how their estate is distributed. The rules differ across England and Wales, Scotland, and Northern Ireland. Inheritance Tax is a separate issue and depends on the tax rules explained later in this guide.

Intestacy rules in England and Wales

You can check who inherits under the intestacy rules in England and Wales on the UK government website.

If there is a surviving spouse/civil partner and children	For deaths on or after 26 July 2023, the spouse or civil partner receives the deceased’s personal chattels, the first £322,000 of the estate – called the statutory legacy – plus interest, and half of the remaining estate. The other half passes to the deceased’s children or their descendants under the statutory trusts. A spouse or civil partner can still inherit if the couple were separated but had not yet legally divorced or dissolved the civil partnership.
Where there is a surviving spouse/civil partner but no children or other descendants	The spouse or civil partner inherits the whole intestate estate.
If there is no surviving spouse/civil partner	The estate passes first to the deceased’s children or their descendants. If there are no descendants, it passes to other relatives according to the statutory order of intestacy.

Intestacy rules in Scotland

Inheritance rules when someone dies intestate in Scotland are more complex because the estate is dealt with in stages: debts and liabilities are settled first, then a surviving spouse or civil partner may claim prior rights, followed by the legal rights of a spouse, civil partner, and children, before the remainder is distributed under the statutory order of succession. The Scottish government is still considering reform of succession law.

The current rules are in the table below.

Stage	Current rule
Prior rights	After debts and liabilities, a surviving spouse or civil partner can claim the family home up to £473,000 (or £473,000 in money if the home is worth more), furnishings and furniture up to £29,000, and £50,000 from the estate if the deceased left descendants or £89,000 if there were no descendants.
Legal rights – spouse/civil partner	After prior rights, the surviving spouse or civil partner can claim one-third of the remaining net movable estate if the deceased left children or other descendants, or one-half if there were no descendants.
Legal rights – children	Children share one-third of the movable estate if there is a surviving spouse or civil partner, or one-half if there is none. Descendants can represent a child who died before the deceased.
Remainder of estate	After prior rights and legal rights have been satisfied, the remainder passes under Scotland’s statutory order of intestate succession. The order depends on which relatives survive, so complex estates may require legal advice.

The Scottish government continues to consider reforms to succession and cohabitants’ rights. At present, an unmarried cohabitant has no automatic entitlement under intestacy, although an eligible surviving cohabitant can apply to court for financial provision from an intestate estate.

Intestacy rules in Northern Ireland

If there is a surviving spouse/civil partner and children	Provided they survive the deceased by at least 28 days, the spouse/civil partner receives the deceased’s personal chattels and the first £250,000 of the remaining estate, plus interest. If there is one child, the spouse/civil partner gets half of the residue and the child gets the other half. If there is more than one child, the spouse/civil partner gets one-third of the residue and the children share the other two-thirds, with descendants able to represent a child who died before the deceased.
Where there is a surviving spouse/civil partner but no children or grandchildren	If there are surviving parents, siblings, or descendants of siblings, the spouse/civil partner receives the deceased’s personal chattels, the first £450,000 of the remaining estate plus interest, and half of the residue. The other half goes to the surviving parents, or, if there are none, to siblings or their descendants. If there are no children, parents, siblings, or descendants of siblings, the spouse/civil partner inherits the whole estate.
If there is no surviving spouse/civil partner	The whole estate is distributed equally between the children or their descendants. If there are no children or descendants, the estate passes to other relatives according to Northern Ireland’s statutory order of intestacy.

In both Scotland and Northern Ireland, surviving spouses and civil partners have statutory rights under intestacy. Unmarried cohabitants do not automatically inherit under the intestacy rules; depending on the jurisdiction and circumstances, they may need to seek legal advice about whether a claim is available.

UK inheritance law regarding marriage

UK inheritance law regarding married couples is different than in many European countries. Under UK inheritance law, marriage doesn’t result in jointly-owned matrimonial or community property unless the couple specifically places such property under joint ownership. As there is no forced heirship in England and Wales, you can freely give away property during your lifetime. However, lifetime gifts can have Inheritance Tax consequences, including under the seven-year rules; the UK does not have a separate general gift tax.

Property registration is handled separately across the UK. In England and Wales, HM Land Registry records the legal owners of registered land but does not record who holds the beneficial interest; trustees can therefore appear on the title as legal owners. Scotland uses Registers of Scotland, while Northern Ireland uses Land Registry services through Land & Property Services. The GOV.UK guidance on updating property records after a death covers England and Wales and links to the corresponding systems for Scotland and Northern Ireland.

Unclaimed inheritance in the UK

Rules for unclaimed estates differ across the UK. In England and Wales, if someone dies without a valid will and without known entitled relatives, the estate can pass to the Crown as ownerless property (bona vacantia) and is administered by the Bona Vacantia Division, with separate arrangements in the Duchies of Lancaster and Cornwall. In Northern Ireland, bona vacantia estates are handled by the Crown Solicitor. In Scotland, heirless estates are handled by the King’s and Lord Treasurer’s Remembrancer.

For England and Wales, see the GOV.UK guidance on claiming an unclaimed estate. Separate guidance applies in Northern Ireland and Scotland.

Inheritance tax in the UK

The standard UK inheritance tax rate is 40%.

From 6 April 2025, UK Inheritance Tax on overseas assets is based on long-term UK residence rather than domicile. Broadly, a person is a long-term UK resident if they were UK tax resident for at least 10 of the previous 20 tax years. Long-term UK residents can be within scope on overseas assets, while UK-situs assets can be within scope even when the deceased was not a long-term UK resident. Long-term UK residence can also continue for a period after someone leaves the UK. Property within scope may include:

• real estate
• cash
• investments
• most of the deceased’s possessions.

Inheritance Tax is generally calculated on the taxable value of the estate after allowable debts, exemptions, and reliefs. Some lifetime gifts can also affect the calculation, particularly gifts made within seven years of death, but not every gift made in that period is taxable.

The executor of the will, or the administrator if there is no will, usually pays any Inheritance Tax due on the estate before assets are distributed. Beneficiaries do not normally pay the estate’s Inheritance Tax themselves, but recipients of certain lifetime gifts can become liable if the donor dies within seven years and the relevant gifts exceed the available threshold. Beneficiaries may also be liable for other taxes (e.g., income tax or capital gains tax) if they earn income from or later sell inherited assets.

As with all other taxes in the UK, inheritance tax is payable to HM Revenue and Customs (HMRC).

Rates and reductions on inheritance tax in the UK

The standard rate for Inheritance Tax in the UK is 40%. Nationality itself does not determine the scope of the tax, but residence history and the location of assets can. From 6 April 2025, the long-term UK residence rules described above determine whether overseas assets are in scope. According to the latest HMRC statistics, 4.72% of UK deaths in the 2023–24 tax year resulted in an Inheritance Tax charge.

This is because there are several allowances and exemptions to reduce the amount of inheritance tax payable on an estate:

• The standard tax-free threshold is the nil-rate band (NRB), which is £325,000. Subject to exemptions and reliefs, the 40% rate generally applies only to the taxable part of the estate above the available threshold. The NRB is fixed at £325,000 through 5 April 2031; check the current HMRC thresholds.
• Transfers to a spouse or civil partner are generally exempt, but from 6 April 2025 the exemption can be restricted if the person making the transfer is a long-term UK resident and the recipient is not. Transfers to qualifying charities and community amateur sports clubs can also be exempt.

• Some lifetime gifts fall outside Inheritance Tax if the donor survives for seven years after making them. Gifts made within seven years of death can still affect the tax calculation, depending on their value, recipient, timing, and any applicable exemptions.
• For deaths on or after 6 April 2026, 100% Agricultural Relief and Business Relief is limited by a combined £2.5 million allowance for qualifying property. Qualifying value above the available allowance generally receives 50% relief. Unused allowance can transfer from a predeceased spouse or civil partner, potentially increasing the allowance to £5 million. See the current Business Relief rules.
• The UK inheritance tax rate on the estate can lessen to 36% if the deceased leaves at least 10% of the estate to charity. You can find a list of charities and a reduced rate inheritance tax calculator for the UK.
• If a qualifying home passes to direct descendants, the residence nil-rate band (RNRB) can add up to £175,000 to the available threshold, potentially increasing an individual’s total threshold to £500,000. The RNRB starts to taper away when the estate is worth more than £2 million.

You can check your likely inheritance taxes on the governments inheritance tax calculator for the UK.

Not every estate has to send a full Inheritance Tax account to HMRC. For deaths on or after 1 January 2022, most estates that qualify as excepted estates do not need to send full details to HMRC. If probate is required for an excepted estate, its estimated value is reported as part of that process; if probate is not needed, the estate may not need to report its value at all. Check the current reporting rules. You can find information on how to pay an Inheritance Tax bill on the UK government website.

As for all other types of fiscal duties, the UK also has tax treaties with several countries to avoid double taxation.

Inheritance tax forms

If a full Inheritance Tax account is required, the main form is IHT400. For deaths on or after 6 April 2025, IHT401a is used with IHT400 when claiming that the deceased was not a long-term UK resident. Form IHT401 remains relevant where domicile information is required. Form IHT205 is for qualifying deaths on or before 31 December 2021; for deaths on or after 1 January 2022, check whether full estate details are required instead.

The British government maintains a full list of forms regarding inheritance tax.

UK Inheritance tax threshold

The standard Inheritance Tax threshold is the nil-rate band (NRB), which is £325,000. A separate residence nil-rate band (RNRB) of up to £175,000 can apply when a qualifying home passes to direct descendants. This can bring the maximum available threshold to £500,000 for an individual, although the RNRB is tapered for estates worth more than £2 million.

Unused NRB and RNRB can generally be transferred between spouses or civil partners. This means a qualifying estate may have up to £650,000 of combined NRB, or up to £1 million when the full transferred RNRB is also available and the relevant home, direct-descendant, and taper conditions are met.

The NRB is fixed at £325,000 and the RNRB at £175,000 through 5 April 2031. You can check the latest Inheritance Tax thresholds on GOV.UK.

Inheritance Tax on gifts in the UK

The UK does not have a separate general gift tax. Instead, Inheritance Tax can apply to some lifetime gifts. No tax is normally due on an outright gift if the donor survives for seven years after making it, unless special rules apply, for example to certain trusts or gifts where the donor continues to benefit from the asset. If the donor dies within seven years, the tax treatment depends on the gift’s value, recipient, timing, and any exemptions.

Such gifts include anything of value, such as money, property, possessions, or when an asset suffers a loss in value at the time of transfer. For example, if you sell your house to your child for less than it’s worth, the difference in value counts as a gift.

Where a lifetime gift is chargeable, gifts made within three years of death can be taxed at 40%. Taper relief can reduce the tax rate on chargeable gifts made three to seven years before death, but it applies only when the total value of relevant gifts made in the seven years before death exceeds the £325,000 nil-rate band. The rates are:

• Less than three years: 40%
• Three to four years: 32%
• Four to five years: 24%
• Five to six years: 16%
• Six to seven years: 8%
• More than seven years: 0%

Exemptions

There is a UK inheritance tax exemption on gifts of £3,000 per year. You can use this on one person or split between multiple people. Such an exemption may carry forward to the next tax year – but only for one year.

You can give a tax-free gift to someone marrying or starting a civil partnership. This amount is £5,000 for your children, £2,500 to grandchildren, and £1,000 to anyone else.

Additionally, you can also make normal gifts out of your income or help certain family members with living expenses, so long as doing so does not affect your standard of living. Finally, you may give small gifts of up to £250 per person as you want during the tax year under certain conditions.

Transfers between spouses or civil partners are generally exempt from Inheritance Tax. However, from 6 April 2025 the exemption can be limited to the nil-rate band if the person making the transfer is a long-term UK resident and the recipient is not. In some cases, the recipient can elect to be treated as a long-term UK resident for Inheritance Tax purposes, but this can bring overseas assets into scope, so specialist advice may be appropriate.

Consult the UK government’s guide for details.

Paying Inheritance Tax in the UK

HMRC dictates that the executors of an estate must pay inheritance tax by the end of the sixth month after the person died. Following this deadline, HMRC will charge interest.

To pay an inheritance tax bill, you need a payment reference number. You can then pay from your own bank account or from a joint account you held with the deceased.

If you are unaware of how much exactly you need to pay, you may also pay an estimated amount, called a payment on account.

HMRC does not send receipts for installments made on an inheritance tax bill. Instead, they write to inform you when you have paid the entire amount and alert you to any outstanding interest payable.

Inheritance law on pensions in the UK

Private and workplace pension death benefits are usually paid under the pension scheme’s rules rather than under your will. You can normally nominate who you would like to receive benefits from a defined contribution pension, although the provider may retain discretion over the payment. Inheritance Tax treatment is a separate issue and changes for deaths on or after 6 April 2027, as explained below.

In most cases, State Pension payments stop when someone dies, but a surviving spouse or civil partner may be able to inherit an extra payment. What can be inherited depends on factors including when the couple married or formed a civil partnership, when the deceased reached State Pension age, and whether they had Additional State Pension, a protected payment, or deferred State Pension. Check the GOV.UK State Pension inheritance rules.

If you have a defined contribution pension, you can usually nominate who you would like to receive any remaining pension benefits, although the scheme trustees or provider are generally not required to follow a non-binding nomination. Defined benefit schemes and annuities work differently: death benefits depend on the scheme or contract rules and are commonly payable only to eligible dependants or other permitted beneficiaries.

For deaths before 6 April 2027, many discretionary pension death benefits are normally outside the estate for Inheritance Tax, although some non-discretionary benefits can already be in scope. For deaths on or after 6 April 2027, Finance Act 2026 brings most unused pension funds and pension death benefits into the deceased’s estate for Inheritance Tax purposes. Some benefits remain excluded, including death-in-service benefits from registered pension schemes and certain dependant scheme pensions. See HMRC’s guidance on the 2027 pension changes.

Income Tax on inherited pension benefits depends on the type of benefit and the age of the pension holder when they died. For the 2026–27 tax year, the standard lump sum and death benefit allowance is £1,073,100; the old lifetime allowance was abolished on 6 April 2024. If the holder dies before 75, most qualifying lump sums are normally tax-free up to the available allowance and certain annuity or drawdown payments can also be tax-free. If they die aged 75 or over, Income Tax is generally deducted from taxable pension payments. Other conditions can apply, including a two-year payment rule. Check the GOV.UK rules on tax on inherited private pensions.

See more information in this article from Unbiased.

Valuing an estate in the UK

When a UK resident dies, heirs must apply for the legal right to deal with their estate. This is applying for probate. In England and Wales, and Northern Ireland, there is a grant of probate if the person leaves a will; without a will, you receive letters of administration. In Scotland, this process is applying for confirmation. The processes are different in each constituent country, but in most cases, you can apply online (separate process for Northern Ireland and Scotland). You must provide a number of documents, such as the will itself and any codicils, certificates of birth, death, and marriage or partnership as applicable.

There are also occasions when you may not need probate; the UK government explains these conditions on its website.

How to value an estate

When applying for probate, you will need to estimate the estate’s value. There are two aspects to this process. First, contact banks, utility providers, and other institutions where the deceased had accounts and ask for an official statement of their assets. Second, value the other possessions of the deceased as of the day they died, including their home, car, jewelry, as well as any outstanding payments due to them, and any gifts they may have made in the preceding seven years. Also, estimate any outstanding debts. You may then calculate what UK inheritance tax applies to the estate.

You do not need an accountant to value the estate for you and can report these figures to HMRC directly. However, it is advisable to get a professional estimate, particularly if the deceased had assets of different kinds or if these were in different countries. If you’re looking for financial advisors in the UK, you can compare your options using Unbiased.

Valuing the estate can take several months, and longer if it is large or complicated. Accordingly, expats may want to put their affairs in order at the time of writing a will so as to ensure a smooth transfer of assets to their heirs.

Useful resources

• UK Inheritance Tax general enquiries (or call +44 300 123 1072 from outside the UK)
• UK government information on wills, inheritance law and taxes
• Find a solicitor in the UK
• NI Direct information on intestacy in Northern Ireland
• Scottish government information on wills and inheritance laws