IHT
Business & Finance abbreviation · Tax
| Stands for | Inheritance tax |
|---|---|
| Categories | Business & Finance |
IHT stands for Inheritance tax, a tax abbreviation.
UK tax on the estate of a person who has died, charged at 40% on value above the £325,000 nil-rate band, plus a residence nil-rate band of up to £175,000 when a home passes to direct descendants. Assets left to a spouse or civil partner are exempt.
Example: We gave the cottage to the children early, hoping it falls outside the IHT net after seven years.
Usage notes
Gifts made more than seven years before death are normally exempt, with taper relief for those made three to seven years before. The nil-rate bands have been frozen since 2009 and 2020 respectively, pulling more estates into the tax. Unused pension pots are due to become liable from April 2027. Despite its name, it is charged on the estate rather than the heirs.
Related abbreviations
More tax abbreviations
- FTC – Foreign tax credit
- FUTA – Federal Unemployment Tax Act tax
- GST – Goods and services tax
- GSTIN – Goods and Services Tax Identification Number
- HOH – Head of household
- HST – Harmonized sales tax
- IOSS – Import One-Stop Shop
- IP PIN – Identity Protection Personal Identification Number
- ITC – Input tax credit
- ITIN – Individual Taxpayer Identification Number
- ITR – Income tax return
- K-1 – Schedule K-1