The Transferable Nil-Rate Band Explained

The transferable nil-rate band lets a surviving spouse or civil partner add any unused part of their late partner's inheritance tax nil-rate band to their own. Where the first partner used none of theirs, the survivor's estate can benefit from up to two full nil-rate bands.

Each person has a nil-rate band of £325,000, the amount of an estate that can pass before inheritance tax applies (gov.uk, as at July 2026, subject to change). Because transfers between spouses and civil partners are generally exempt, the first partner to die often uses little or none of their band, and the unused share can carry across. This guide sits within our Inheritance Tax Explained overview and our wider estate planning guide. Figures are current as at July 2026 and are subject to change.

What is the transferable nil-rate band?

The transferable nil-rate band is a rule that lets the unused portion of one spouse or civil partner's nil-rate band pass to the survivor on the second death. Gov.uk puts it plainly: if you are married or in a civil partnership and your estate is worth less than your threshold, any unused threshold can be added to your partner's threshold when you die (gov.uk, as at July 2026, subject to change). It applies to spouses and civil partners, not to unmarried couples.

How the transfer works

The transfer happens on the second death, not the first. When the first partner dies, assets left to the survivor are generally exempt from inheritance tax, so their nil-rate band is often left unused (gov.uk, as at July 2026, subject to change). That unused share is then available to the survivor's estate. It is not paid out at the first death and it does not happen automatically: the survivor's personal representatives have to claim it when they deal with the second estate.

The first death sets aside the unused allowance. The second death is when a claim can bring it into play.

The transfer is a percentage, not a fixed sum

The amount that transfers is worked out as a percentage of the nil-rate band that went unused, not as a cash figure frozen at the first death. This matters because the band can change over time. HMRC applies the unused percentage from the first estate to the nil-rate band in force at the second death (gov.uk, as at July 2026, subject to change). So if none of the first band was used, 100% transfers, and the survivor can have up to two full bands at whatever level applies later.

Illustration of the percentage method described at gov.uk/inheritance-tax, as at July 2026, subject to change. The maximum uplift from one late partner is 100%.

The residence nil-rate band can transfer too

A separate transfer applies to the residence nil-rate band, the extra allowance of up to £175,000 available when a home passes to children or grandchildren (gov.uk, as at July 2026, subject to change). Any unused residence band from a late spouse or civil partner can be claimed by the survivor's estate, again worked out as a percentage of what went unused. Combining both bands from both partners is how a married couple can reach up to £1,000,000 before inheritance tax, where a home passes to direct descendants.

Source: gov.uk/inheritance-tax and gov.uk, passing on a home, as at July 2026. These thresholds are frozen until the end of the 2030-31 tax year (5 April 2031) (gov.uk), subject to change. The residence band tapers where an estate is above £2,000,000. See the residence nil-rate band for detail.

Common pitfalls to be aware of

A few points catch families out. The transfer is not automatic, so it has to be claimed on the second death or it can be lost. It applies only to spouses and civil partners, not to unmarried couples, however long together. And the uplift from any one late partner is capped, so a person who outlives more than one spouse cannot stack unlimited bands (gov.uk, as at July 2026, subject to change).

• It must be claimed. Nothing transfers by default; the survivor's representatives make the claim.
• Marriage or civil partnership only. Unmarried partners cannot use the transfer.
• Records help. Evidence from the first death supports the claim, sometimes many years later.
• The second death links to the wider estate. See our guide to inheritance tax on the second death.

Scotland and Northern Ireland

Inheritance tax is a UK-wide tax, so the nil-rate band and its transfer apply in the same way across England and Wales, Scotland and Northern Ireland. What differs is the surrounding succession law. Scotland has its own rules, including legal rights that can entitle a spouse and children to a fixed share of an estate, and it uses confirmation rather than a grant of probate. Northern Ireland has a separate but broadly similar system to England and Wales. Where an estate touches more than one jurisdiction, it can be worth taking advice in each.

Frequently asked questions