Quick answer
The spouse exemption allows you to pass your entire estate to your spouse or civil partner typically without incurring Inheritance Tax, regardless of the amount. In England and Wales, this exemption works alongside the nil-rate band of £325,000 (gov.uk — Inheritance Tax) (the standard threshold for 2026/27), and married couples may also benefit from the transferable nil-rate band, potentially doubling their combined allowance to £650,000. However, if your spouse is not domiciled in the UK, the exemption may be limited to £325,000, and careful planning may be needed to optimise your estate’s tax position. Additionally, any unused nil-rate band can generally be carried forward on the second death, subject to certain conditions. This guide explains the spouse exemption rules in 2026/27, how to maximise your combined tax allowances, and the key planning considerations for non-domiciled spouses.
Last reviewed: 24 May 2026 by the MP Estate Planning editorial team. Jurisdiction: England and Wales. Scotland and Northern Ireland have different probate and intestacy rules; the IHT thresholds are UK-wide.
Inheritance Tax (IHT) can be a significant concern for individuals looking to protect their estate and ensure their loved ones are well taken care of. Understanding the intricacies of spouse allowance inheritance tax is crucial in minimising the tax burden on your beneficiaries.
We understand that navigating the complexities of inheritance tax can be daunting. Our team is dedicated to helping you safeguard your legacy. For more information on Inheritance Tax Allowance, you can visit our website. Want to protect your estate from unnecessary inheritance tax? You can fill out our contact form, call us at 0117 440 1555, or book a call with our team of specialists today.
Key Takeaways
- Understand the spouse exemption and its implications on your estate.
- Learn how to maximise your inheritance tax spouse exemption.
- Discover the benefits of spouse inheritance tax relief and how it can benefit your beneficiaries.
- Get expert guidance on navigating the complexities of spouse allowance inheritance tax.
- Protect your estate and ensure your loved ones are well taken care of.
Understanding Inheritance Tax Basics
Three rule changes you may need to consider (2026/27)
1. Pensions become subject to IHT from 6 April 2027. Most unused defined-contribution pension pots currently sit outside the estate for IHT — that ends on 6 April 2027 (gov.uk policy paper). HMRC estimates around 10,500 estates will face IHT for the first time as a result.
2. Business and agricultural property reliefs capped at £2.5m per person from 6 April 2026. Above the cap, only 50% relief applies — effective IHT of 20%. AIM shares dropped to 50% relief and do not use the £2.5m allowance (Saffery — APR/BPR reforms).
3. The NRB, RNRB and £2m taper threshold are frozen until 5 April 2031 following the 2024 and 2025 Budgets (gov.uk — NRB and RNRB freeze). With inflation, more estates will be pulled into IHT each year — a process commonly called “fiscal drag.”
Grasping the fundamentals of inheritance tax is essential for anyone looking to secure their family’s financial future. Inheritance tax can significantly impact the assets you leave behind for your loved ones.
What is Inheritance Tax?
Inheritance tax is a tax levied on the estate of a deceased person. The standard Inheritance Tax rate is 40%, but it’s only charged on the part of your estate that’s above the threshold. For the current tax year, the nil rate band is £325,000 per person, and there’s also the Residence Nil Rate Band (RNRB) that can increase this threshold if you leave your home to direct descendants.
Who Needs to Pay Inheritance Tax?
Inheritance tax is typically paid by the executors of the deceased person’s estate. However, not everyone needs to pay it. Transfers between spouses are generally exempt from Inheritance Tax, thanks to the spouse exemption inheritance tax rule. This means that when one spouse dies, the surviving spouse can inherit their estate without having to pay inheritance tax.
To determine if you need to pay inheritance tax, consider the total value of your estate, including property, savings, and other assets. If your estate is below the nil rate band, you won’t have to pay inheritance tax.
Key Exemptions and Allowances
There are several key exemptions and allowances that can reduce the amount of inheritance tax payable. These include:
- The nil rate band: £325,000 per person
- The Residence Nil Rate Band (RNRB): an additional allowance when leaving your home to direct descendants
- Spouse exemption: transfers between spouses are generally exempt
- Charitable donations: gifts to registered charities are exempt
| Exemption/Allowance | Description | Value |
|---|---|---|
| Nil Rate Band | Basic allowance per person | £325,000 |
| Residence Nil Rate Band (RNRB) | Additional allowance for leaving home to direct descendants | Up to £175,000 (gov.uk — RNRB) |
| Spouse Exemption | Transfers between spouses | No limit |
Understanding these exemptions and allowances can help you plan your estate more effectively, potentially reducing the inheritance tax burden on your loved ones.
The Spouse Allowance Explained
The spouse allowance is a vital component of spousal inheritance tax planning that can provide substantial benefits for married couples in the UK. It allows the transfer of any unused nil rate band from the deceased spouse to the surviving spouse, potentially doubling the outside the scope of IHT allowance.
Definition of Spouse Allowance
Spouse allowance refers to the ability to transfer unused inheritance tax allowances from one spouse to another upon death. This means that if one spouse does not use their full nil rate band (the amount that can be passed on free of inheritance tax), the unused portion can be claimed by the surviving spouse.
How Spouse Allowance Works
When the first spouse dies, their estate is assessed for inheritance tax. If they have not used their full nil rate band, the unused amount can be transferred to the surviving spouse. This is done by making a claim when the first spouse dies, ensuring that the surviving spouse’s nil rate band is increased. For example, if the nil rate band is £325,000 and the first spouse dies leaving everything to the surviving spouse (who is exempt from inheritance tax due to spousal exemption), the surviving spouse can claim the unused nil rate band, potentially increasing their allowance to £650,000.
For more details on the inheritance tax limit in the UK, you can visit our page on Inheritance Tax Limit in the UK.
Potential Benefits for Married Couples
The spouse allowance can significantly reduce the inheritance tax liability when the surviving spouse passes away. This can be particularly beneficial for couples with larger estates. By potentially doubling the nil rate band, married couples can ensure that more of their estate is passed on to their beneficiaries rather than being lost to tax.
- Maximizes the inheritance tax allowance for married couples.
- Reduces the tax burden on the surviving spouse’s estate.
- Ensures more of the estate is preserved for beneficiaries.
Understanding and utilizing the spouse allowance is a key aspect of effective spouse inheritance tax relief and spousal inheritance tax planning. By taking advantage of this allowance, married couples can better protect their estate and ensure a smoother transition of their assets.
The Importance of Estate Planning
When it comes to securing your family’s financial future, estate planning plays a vital role in reducing inheritance tax burdens. As an experienced team, we understand the complexities involved in managing your estate and the importance of making informed decisions to protect your assets.
Why Plan Your Estate?
Estate planning is essential for ensuring that your assets are distributed according to your wishes while minimizing inheritance tax liabilities. By planning ahead, you can:
- Ensure that your loved ones are provided for
- Reduce the financial burden of inheritance tax on your estate
- Make informed decisions about your assets and legacy
Common Estate Planning Tools
There are several estate planning tools at your disposal, including making lifetime gifts, setting up trusts, and ensuring that your will is up-to-date and tax-efficient. For instance, gifting assets to beneficiaries during your lifetime can reduce the value of your estate subject to inheritance tax, while also supporting your loved ones.
| Estate Planning Tool | Description | Benefit |
|---|---|---|
| Lifetime Gifts | Gifting assets to beneficiaries during your lifetime | Reduces the value of your estate subject to inheritance tax |
| Trusts | Setting up trusts to manage and distribute assets | Provides control over how assets are distributed and can reduce inheritance tax |
| Will Planning | Ensuring your will is up-to-date and tax-efficient | Ensures that your wishes are respected and can minimize inheritance tax liabilities |
How Inheritance Tax Affects Your Estate
Inheritance tax can significantly impact the value of your estate, potentially reducing the amount that your beneficiaries receive. Understanding how inheritance tax works and planning accordingly can help mitigate this impact. For example, utilizing the transfer allowance spouse inheritance tax can help married couples minimize their inheritance tax liability.
By understanding the spouse inheritance tax threshold and engaging in spousal inheritance tax planning, you can make informed decisions that protect your estate and your loved ones. We are here to guide you through this process, ensuring that you have the necessary knowledge and tools to secure your family’s financial future.
Exemptions for Surviving Spouses
Understanding the exemptions available to surviving spouses is essential for effective estate planning and minimizing inheritance tax liability. In the UK, the inheritance tax system provides several benefits that can significantly reduce the tax burden on surviving spouses.
How Spouses Can Benefit
Surviving spouses can benefit greatly from the inheritance tax spouse exemption. This exemption allows for the transfer of any unused nil rate band from the deceased spouse to the surviving spouse, potentially doubling their outside the scope of IHT allowance. As a result, surviving spouses can inherit a larger portion of the estate without incurring significant inheritance tax liabilities.
For instance, if the deceased spouse had not used their full nil rate band, the unused amount can be transferred to the surviving spouse. This transfer can significantly increase the surviving spouse’s outside the scope of IHT allowance, providing them with greater financial security.
Understanding the ‘Nil Rate Band’
The nil rate band is a crucial component of the UK’s inheritance tax system. It represents the portion of an estate that is exempt from inheritance tax. For the 2023 tax year, the nil rate band is £325,000. Any unused portion of this band can be transferred to the surviving spouse, allowing them to benefit from a potentially larger outside the scope of IHT allowance.
To illustrate, if a spouse passes away with an unused nil rate band, the surviving spouse can inherit this unused amount. This means that if both spouses had a nil rate band of £325,000 and one spouse had not used any of it, the surviving spouse could have a total nil rate band of £650,000, significantly reducing their inheritance tax liability.
By understanding and utilizing the nil rate band and spouse exemption effectively, couples can ensure that they minimize their spouse exemption inheritance tax liability, safeguarding a larger portion of their estate for their beneficiaries.
Potential Impact of Inheritance Tax
Understanding the potential consequences of Inheritance Tax is crucial for effective estate planning. Inheritance Tax can have a significant impact on the financial security of families, potentially reducing the value of the estate passed on to beneficiaries.
Financial Consequences for Families
The financial consequences of Inheritance Tax can be substantial. Without proper planning, a significant portion of your estate could be lost to Inheritance Tax, reducing the inheritance received by your beneficiaries. For instance, if a spouse inherits a large portion of the estate, they may be entitled to spouse inheritance tax relief, which can help mitigate some of the tax burden.
Effective spousal inheritance tax planning involves understanding how Inheritance Tax works and taking steps to minimize its impact. This can include making use of allowances and exemptions available to spouses, such as the spouse allowance, to reduce the taxable value of the estate.
Case Studies of Inheritance Tax Scenarios
Let’s consider a few scenarios to illustrate the potential impact of Inheritance Tax. In one case, a married couple with a combined estate valued at £1 million may be able to reduce their Inheritance Tax liability by utilizing the spouse allowance inheritance tax relief. By doing so, they can ensure that more of their estate is passed on to their beneficiaries.
“Inheritance Tax planning is not just about saving tax; it’s about ensuring that your loved ones are financially secure.” – Expert in Estate Planning
In another scenario, a family with a significant asset base may need to consider more complex estate planning strategies, including trusts and lifetime gifts, to minimize their Inheritance Tax liability.
By examining these case studies and understanding the financial consequences of Inheritance Tax, families can better plan their estates to mitigate the effects of Inheritance Tax and ensure that their beneficiaries receive the maximum inheritance possible.
Strategies to Minimise Inheritance Tax
When it comes to preserving your wealth for future generations, understanding strategies to minimise inheritance tax is essential. By employing the right techniques, you can significantly reduce the tax burden on your estate, ensuring that more of your assets are passed on to your loved ones.
Gifts and Transfers During Your Lifetime
One effective strategy for minimising inheritance tax is making gifts and transfers during your lifetime. By gifting assets to your beneficiaries or transferring them into trust, you can reduce the value of your estate that is subject to inheritance tax.
- Gifts made within seven years of death are considered ‘potentially exempt transfers’ and can be exempt from inheritance tax if you survive for the full seven years.
- Annual exemptions, such as the £3,000 annual gift allowance, can be utilised to make outside the scope of IHT gifts.
- Regular gifts out of income can also be exempt from inheritance tax, provided they are made from your surplus income and do not affect your standard of living.
Setting Up Trusts for Your Estate
Setting up trusts is another valuable strategy for minimising inheritance tax. By placing assets in trust, you can remove them from your estate while still benefiting from them or ensuring they are used for the benefit of your loved ones.
There are various types of trusts available, each with its own benefits and considerations:
- Interest in Possession Trusts: These trusts provide a beneficiary with the right to income from the trust assets for a specified period.
- Discretionary Trusts: Trustees have the discretion to distribute trust assets among a class of beneficiaries as they see fit.
- Bare Trusts: Beneficiaries have an absolute right to the trust assets and any income they generate.
By carefully selecting and setting up the right type of trust, you can effectively reduce your estate’s inheritance tax liability.
It’s crucial to seek professional advice when considering gifts, transfers, and trusts as part of your estate planning strategy. By doing so, you can ensure that you are making the most effective use of these strategies to minimise inheritance tax and protect your wealth for future generations.
Navigating Complex Family Structures
Navigating the complexities of family structures is essential for effective inheritance tax planning. As family dynamics evolve, so too must our approach to managing inheritance tax. We understand the challenges that come with complex family arrangements and are here to guide you through the process.
Tax Implications for Cohabiting Partners
Cohabiting partners do not benefit from the same exemptions as married couples or civil partners, making inheritance tax planning particularly challenging. For instance, cohabiting partners are not entitled to the spouse exemption, which can lead to a significant tax burden. We must consider alternative strategies to mitigate this impact.
Key Considerations for Cohabiting Partners:
- Lack of automatic inheritance rights
- No spouse exemption for inheritance tax
- Potential for higher tax liabilities
To address these challenges, we recommend exploring other estate planning tools, such as setting up trusts or making gifts during your lifetime. These strategies can help reduce the tax burden on your partner and ensure that your wishes are respected.
Strategies for Blended Families
Blended families face unique challenges when it comes to inheritance tax planning. Balancing the needs of a current partner and children from previous relationships requires careful consideration. We can help you develop a tailored plan that addresses these complexities.
Effective Strategies for Blended Families Include:
- Creating a trust to benefit both your current partner and children
- Making strategic gifts to reduce your estate’s tax liability
- Reviewing and updating your will to reflect changes in your family structure
By adopting these strategies, you can ensure that your estate is distributed according to your wishes while minimizing the impact of inheritance tax. We are committed to providing you with the guidance and support you need to navigate these complex issues.
Working with Inheritance Tax Specialists
Navigating the complexities of spouse allowance inheritance tax can be daunting, but with the right specialist, you can ensure you’re making informed decisions.
Seeking professional advice from inheritance tax specialists can provide valuable insights and strategies tailored to your specific situation. These experts can help you understand the intricacies of spousal inheritance tax planning and ensure you’re maximizing the available reliefs.
When to Seek Professional Advice
Knowing when to seek professional advice is crucial. If you’re dealing with a complex family structure, have significant assets, or are unsure about the implications of inheritance tax spouse nil rate band on your estate, it’s time to consult a specialist.
- You have assets that are subject to inheritance tax.
- You’re unsure about how to maximize spouse inheritance tax relief.
- You’re dealing with a blended family or complex family dynamics.
Choosing the Right Specialist for Your Needs
Choosing the right inheritance tax specialist can make a significant difference in your estate planning. Look for professionals with experience in spousal inheritance tax planning and a track record of providing personalized advice.
We recommend considering the following when selecting a specialist:
- Their experience with cases similar to yours.
- Their understanding of the latest inheritance tax regulations.
- Their ability to communicate complex concepts in a clear, understandable manner.
By working with the right inheritance tax specialist, you can ensure that your estate is managed in a way that minimizes tax liabilities and maximizes the inheritance for your loved ones.
Frequently Asked Questions
As you navigate the complexities of estate planning, you may have questions about spouse allowance inheritance tax. We’re here to address some of the most common concerns and myths surrounding this topic.
Common Concerns About Spouse Allowance
One of the primary concerns individuals have is regarding the eligibility criteria for spouse allowance. To qualify, the deceased spouse must have left their entire estate to the surviving spouse, either outright or through a trust, and the estate must be valued below certain thresholds.
Another concern is how spouse allowance affects the overall inheritance tax spouse exemption. When a spouse inherits assets from the deceased, these are generally exempt from inheritance tax due to the spouse exemption. However, understanding how this interacts with other allowances, such as the nil-rate band, is crucial.
| Allowance | Description | Benefit |
|---|---|---|
| Spouse Allowance | Transferable allowance between spouses | Reduces inheritance tax liability |
| Nil-Rate Band | Allowance for outside the scope of IHT inheritance | Up to £325,000 outside the scope of IHT |
| Inheritance Tax Spouse Exemption | Exemption for transfers between spouses | No inheritance tax on spouse inheritance |
Answers to Inheritance Tax Myths
A common myth is that all inherited assets are subject to inheritance tax. However, as mentioned, transfers between spouses are generally exempt. For more detailed information on how inheritance tax and capital gains tax apply to inherited property, you can visit our resource page on the topic: Inheritance Tax and Capital Gains Tax on Inherited.
“Understanding the nuances of spouse allowance and inheritance tax can significantly impact your estate planning strategy, ensuring you minimize tax liabilities and maximize the legacy for your loved ones.”
It’s also believed that only the wealthy need to worry about inheritance tax. In reality, the spouse inheritance tax threshold and other allowances can affect a wider range of individuals, making it essential for many to understand these concepts.
By clarifying these common concerns and myths, we hope to empower you with the knowledge needed to make informed decisions about your estate planning, ensuring you can protect your family’s assets effectively.
Taking the Next Steps
Effective estate planning is key to safeguarding your legacy and minimizing inheritance tax liabilities. As we’ve discussed, spouse inheritance tax relief and spousal inheritance tax planning play crucial roles in protecting your estate. By understanding the inheritance tax spouse nil rate band, you can make informed decisions about your assets.
Personalized Guidance for Your Estate
We encourage you to take the next steps in protecting your estate by contacting our team of specialists. They will provide personalized guidance tailored to your unique situation, helping you navigate the complexities of spouse allowance inheritance tax.
To get started, you can fill out our contact form, call us at 0117 440 1555, or book a call with our team today. We’re committed to helping you safeguard your legacy and ensure that your loved ones are well taken care of through effective spousal inheritance tax planning.
Protecting Your Legacy
By seeking professional advice on spouse inheritance tax relief and related matters, you can enjoy peace of mind knowing that your estate is in good hands. Let us help you make the most of the inheritance tax spouse nil rate band and other available allowances.
FAQ
What is spouse allowance in the context of inheritance tax?
Spouse allowance refers to the transfer of any unused nil rate band from the deceased spouse to the surviving spouse, potentially doubling the outside the scope of IHT allowance and reducing inheritance tax liability.
How does the nil rate band work for married couples?
The nil rate band is currently set at £325,000 per person. Any unused portion can be transferred to the surviving spouse, allowing them to have a potentially doubled outside the scope of IHT allowance.
What is the Residence Nil Rate Band (RNRB) and how does it affect inheritance tax?
The RNRB is an additional allowance that can be claimed when a residence is left to direct descendants. It can increase the threshold for inheritance tax, reducing the tax liability.
Can gifts made during my lifetime reduce inheritance tax?
Yes, gifts made within seven years of death are considered ‘potentially exempt transfers’ and can be exempt from inheritance tax if you survive for the full seven years, thereby reducing the value of your estate subject to inheritance tax.
How do I benefit from spouse exemption on inheritance tax?
As a married couple, you can benefit from spouse exemption, which allows the transfer of assets between spouses without incurring inheritance tax. Additionally, any unused nil rate band can be transferred to the surviving spouse.
What are the tax implications for cohabiting partners regarding inheritance tax?
Cohabiting partners do not benefit from the same exemptions as married couples or civil partners. They may face higher inheritance tax liabilities, making it essential to seek professional advice for estate planning.
How can setting up trusts help in minimising inheritance tax?
Setting up trusts can help reduce the value of your estate subject to inheritance tax by placing assets in trust for beneficiaries, thereby protecting more of your wealth for your loved ones.
What is the spouse inheritance tax relief, and how does it work?
Spouse inheritance tax relief allows for the transfer of assets between spouses without incurring inheritance tax. It also includes the transfer of any unused nil rate band to the surviving spouse.
How can I ensure that my estate is distributed according to my wishes while minimising inheritance tax?
Effective estate planning, including making lifetime gifts, setting up trusts, and understanding the spouse allowance and other exemptions, can help ensure that your estate is distributed according to your wishes while minimising inheritance tax liabilities.
What is the transfer allowance for spouses regarding inheritance tax?
The transfer allowance for spouses refers to the ability to transfer any unused nil rate band from the deceased spouse to the surviving spouse, potentially doubling their outside the scope of IHT allowance.
How does the spouse nil rate band work in inheritance tax planning?
The spouse nil rate band allows for the transfer of any unused nil rate band to the surviving spouse, potentially doubling their outside the scope of IHT allowance and reducing inheritance tax liability.
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How the Spousal Exemption and Transferable Nil Rate Band Work Together
One of the most frequently misunderstood areas of inheritance tax planning for married couples concerns what happens when the first spouse to die has already used some — or all — of their nil rate band during their lifetime. Understanding how these allowances interact is essential, particularly given that the standard nil rate band remains frozen at £325,000 until at least April 2030.
What Happens if the First Spouse Used Part of Their Allowance?
The spousal exemption means that assets passing between spouses on death are generally outside the scope of IHT. However, the transferable nil rate band operates separately and is calculated as a percentage of the allowance unused at the first spouse’s death — not a fixed cash sum. So if the first spouse left, say, £162,500 (half their nil rate band) to individuals other than their spouse, only 50% of the nil rate band transfers to the surviving spouse. When the survivor dies, HMRC will typically apply that 50% uplift to whatever the nil rate band stands at at that point, rather than at the time of the first death. This means the transferable portion may be worth more or less in cash terms than it was originally.
Full guidance on how HMRC calculates the transferred nil rate band is set out in the HMRC Inheritance Tax: transferable nil rate band guidance (IHT402).
The Residence Nil Rate Band and the £1,000,000 Threshold
In addition to the standard nil rate band, many married couples may also benefit from the Residence Nil Rate Band (RNRB) of £175,000 per person, provided the qualifying residential property passes to direct descendants. When both the standard nil rate band and the RNRB are fully transferred to a surviving spouse, the combined potential threshold for the survivor’s estate can reach £1,000,000 — meaning, in many cases, no IHT would be due at all. It is worth noting, however, that the RNRB begins to taper away for estates valued above £2,000,000, which can affect wealthier couples significantly.
The 2025 Budget Changes and Pension Assets From April 2027
The October 2024 Budget introduced reforms — scheduled to take effect from April 2027 — that will generally bring unused pension funds within the scope of IHT for the first time. For married couples, this is likely to require a reassessment of pension nomination strategies, since assets that were previously passed outside the estate (and therefore outside the scope of IHT) may in future form part of the taxable estate subject to the 40% IHT rate. In our experience, many couples have not revisited their pension nominations in years, and the interaction between pension assets, the transferable nil rate band, and the new rules is likely to be one of the most consequential planning decisions families face before April 2027. We would strongly encourage speaking with a regulated financial adviser and reviewing estate documentation well ahead of that deadline.
Common Questions About Spouse Allowances and Inheritance Tax
What is the inheritance tax spouse exemption in the UK?
The spousal exemption means that assets passing between legally married spouses or civil partners — whether during lifetime or on death — are generally outside the scope of inheritance tax, provided both parties are domiciled in the United Kingdom. There is no upper cash limit on this exemption between UK-domiciled spouses, which is one of the most significant IHT reliefs available. The rules are set out by HMRC and apply in England, Wales, Scotland, and Northern Ireland, though our focus here is England and Wales.
How does the nil rate band transfer work when a spouse dies?
When one spouse dies and leaves their estate to the surviving spouse (using the spousal exemption), their nil rate band — currently £325,000 — may go entirely or partially unused. HMRC allows that unused proportion to transfer to the surviving spouse’s estate. The claim is made on the second death, typically during probate, using HMRC form IHT402. The personal representatives of the second estate must usually submit evidence of the first spouse’s death and their IHT position at that time. In our experience, this claim is sometimes overlooked or submitted without the supporting documentation HMRC requires, which can cause delays.
If my husband dies do I get his state pension after?
This is one of the most common questions we encounter from surviving spouses. Whether a widow or widower can inherit any of their late partner’s state pension depends primarily on when each person reached state pension age. Under the new state pension (which applies to those who reached pension age on or after 6 April 2016), it is generally not possible to inherit a spouse’s state pension, though there are limited provisions for inheriting additional state pension built up under the old system. Under the basic state pension (old system), a surviving spouse may in some cases be able to use their late partner’s National Insurance record to boost their own entitlement. The rules are nuanced and the GOV.UK state pension eligibility guidance sets out the current position in detail. This is a matter for the Department for Work and Pensions rather than an estate planning consultancy, and we would always recommend contacting DWP directly or seeking regulated financial advice on pension entitlements.
How much is the state pension for a couple?
There is no longer a joint state pension for married couples in the UK — each individual receives their own state pension based on their own National Insurance record. As of the 2024/25 tax year, the full new state pension is £221.20 per week per person. A couple where both partners qualify for the full new state pension would therefore typically receive a combined total of around £442.40 per week. This is distinct from any IHT or estate planning consideration, but it is relevant context when projecting the financial position of a surviving spouse after bereavement.
What are the capital gains tax rules when transferring property to a spouse on death?
When assets — including property — pass to a surviving spouse on death, they are generally treated as being acquired at probate value (the market value at the date of death) for capital gains tax purposes. This is sometimes called a CGT-free uplift, and it means the surviving spouse inherits the asset at its current market value rather than the deceased’s original purchase price. Any gain that accrued during the deceased’s lifetime is effectively extinguished. Transfers between spouses on death are also outside the scope of IHT under the spousal exemption. The position can become more complex where the property is not the main residence or where the estate involves trusts, and in those circumstances taking professional advice from a solicitor or regulated tax adviser is typically advisable.