HMRC has confirmed that the current Inheritance Tax (IHT) thresholds will remain frozen for an additional year, up to and including the 2030/31 tax year. This extension means more high-value estates are likely to fall within the scope of IHT over the coming years.
What’s Staying Frozen?
The following thresholds remain unchanged until April 2031:
- Nil-Rate Band (NRB): £325,000
- Residence Nil-Rate Band (RNRB): £175,000
- RNRB taper threshold: £2 million
- £1 million combined allowance for 100% APR and BPR
Any increases linked to inflation will now only take effect from 6 April 2031, unless policy changes again.
What This Means for High-Value Estates
HMRC estimates that a further 2,100 estates will become taxable in 2030/31 as a direct result of this freeze.
For wealthy families, business owners and clients with international assets, this makes forward planning even more important.
Key implications include:
- More estates exceeding the NRB and RNRB
- Greater exposure to the RNRB taper for estates over £2 million
- Increased IHT on agricultural, business and investment assets
- A stronger need for lifetime planning, trust reviews and professionally drafted Wills
How NSS Legal Can Help
At NSS Legal Ltd, we work with high-net-worth individuals, entrepreneurs and international families to structure their estates tax-efficiently and ensure their Wills, trusts and lifetime planning reflect the current IHT landscape.
Our private client team offers clear advice on:
- Inheritance Tax mitigation
- Use of reliefs (APR, BPR, RNRB)
- Structuring high-value estates
- Cross-border assets and domicile issues
- Complex or business-owned wealth
As a Chambers-ranked private client firm based in Finchley, we provide specialist, senior-led guidance tailored to complex estates.
Speak to Our Private Client Team
If you would like to review your IHT exposure or update your estate planning, please contact NSS Legal Ltd.
Our estate planning solicitors would be pleased to assist.