Inheritance Tax for Unmarried Couples

Unmarried couples face inheritance tax on very different terms from married couples and civil partners. The exemption that lets spouses pass assets to each other tax free does not apply to cohabiting partners, however long they have lived together (gov.uk, HMRC manual, as at July 2026, subject to change).

That single difference shapes almost everything else. An estate left to an unmarried partner is treated much like an estate left to a friend or a sibling, and unused allowances cannot be handed to the survivor. This guide explains why, how the numbers compare, what happens with no will, and the mainstream options couples often look at. It sits within our wider Inheritance Tax Explained guide. Figures are current as at July 2026 and are subject to change.

Do unmarried couples pay inheritance tax?

They can, in situations where a married couple would not. Inheritance tax is charged at 40% on the part of an estate above the available tax-free bands, and unmarried partners do not qualify for the exemption on transfers between them (gov.uk, as at July 2026, subject to change). Each partner still has their own nil-rate band of £325,000, but those bands cannot be combined or transferred (gov.uk, as at July 2026, subject to change).

Why the spouse exemption does not apply

The exemption for transfers between partners is written for lawful marriage and civil partnership only. HMRC guidance is explicit that people living together but not lawfully married do not qualify, however long the relationship has lasted, in England, Wales and Northern Ireland (gov.uk, HMRC manual, as at July 2026, subject to change). There is no "common-law marriage" that changes this for tax. Because the transfer between partners is not exempt, anything above the deceased partner's own bands can be taxed at 40% (gov.uk, as at July 2026, subject to change).

Two further consequences follow from the same rule. A cohabiting partner cannot inherit the deceased's unused nil-rate band the way a widow or widower can, and they generally cannot claim the transferable residence nil-rate band either, which is also framed around spouses and civil partners (gov.uk, passing on a home, as at July 2026, subject to change). For how that transfer works for married couples, see our note on the transferable nil-rate band.

What happens if there is no will

An unmarried partner is in a weak position where there is no valid will. The intestacy rules that decide who inherits do not recognise a cohabiting partner at all, so the estate passes to relatives such as children, parents or siblings, and the surviving partner receives nothing automatically (gov.uk, intestacy rules, as at July 2026, subject to change). This is one of the most common reasons unmarried couples choose to put a will in place.

A surviving partner who is left out may in some cases apply to a court for provision from the estate, but that is a formal legal claim with no guaranteed result, and it can be costly and slow. Writing a valid will is generally the simpler route, and you can read our overview of writing a will for what that involves. It can be worth discussing your circumstances with a qualified professional.

Planning options unmarried couples often consider

There is no way to manufacture the spouse exemption without marrying or entering a civil partnership, but several mainstream, legitimate steps are commonly discussed. None of these guarantees a particular tax outcome, and the right mix depends on individual circumstances, so many people take advice before acting (gov.uk, as at July 2026, subject to change).

• Make a valid will. A will lets each partner decide what the other receives, rather than leaving it to the intestacy rules.
• Marriage or civil partnership. Formalising the relationship brings the spouse exemption and transferable bands into play (gov.uk, as at July 2026, subject to change).
• Lifetime gifts. Outright gifts may fall outside the estate if the giver survives seven years, and there are set annual and small-gift exemptions (gov.uk, rules on giving gifts, as at July 2026, subject to change).
• Life cover written in trust. Some couples consider a life policy held in trust to provide funds for a tax bill; this is a regulated product and general information only, so it is one to discuss with an FCA-authorised adviser.

On gifts specifically, everyone can give away up to £3,000 in total each tax year under the annual exemption, plus separate small gifts of up to £250 per person, with gifts on marriage or civil partnership having their own limits (gov.uk, rules on giving gifts, as at July 2026, subject to change). These figures change, so it can be worth confirming the current position before relying on them.

Unmarried couples in Scotland and Northern Ireland

Inheritance tax is a UK-wide tax, so the £325,000 nil-rate band, the 40% rate and the lack of a spouse exemption for cohabiting partners apply across the UK (gov.uk, as at July 2026, subject to change). The surrounding succession law differs. Scotland has its own rules, and a surviving cohabitant there may apply to a court for provision from an estate within a limited period, which is different from the position in England and Wales. Northern Ireland has a separate but broadly similar system to England and Wales. Where an estate touches more than one UK nation, it can be worth taking advice in each. For the bigger picture, see our estate planning guide.

Frequently asked questions