In the UK, the inheritance tax threshold is £325,000, which is also known as the "nil-rate band". This means that if the value of your estate is below this threshold, there is normally no inheritance tax to pay. If you leave everything above the threshold to your spouse, civil partner, a charity, or a community amateur sports club, there is also no inheritance tax to pay. If you give away your home to your children (including adopted, foster, or stepchildren) or grandchildren, your threshold can increase to £500,000. If youre married or in a civil partnership and your estate is worth less than your threshold, any unused threshold can be added to your partners threshold when you die. The standard inheritance tax rate in the UK is 40%, and its only charged on the part of your estate thats above the threshold.