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the nil rate band is an individual's inheritance tax threshold it's called the nil rate band because beneath the threshold there is nil or 0% inheritance tax it's the same for everyone it's three hundred and twenty five thousand pounds and it's due to stay that way until at least 2015 any deceased person's estate with more than three hundred twenty five thousand pounds after debts inheritance tax exemptions and reliefs have been taken off will be subject to inheritance tax currently 40 percent that means there's 40 percent inheritance tax on everything above the three hundred and twenty five thousand pound threshold one of those inheritance tax reliefs is the transferable nil rate band it only applies where the deceased was once in a marriage or civil partnership and was the second to die in other words they outlived their spouse or civil partner on top of that is only needed if there would have been taxed to pay otherwise so it's only a small percent of estates that that could benefit

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