Define: Excepted Estate

An excepted estate, in legal terms, refers to a category of estates in the United Kingdom that are exempt from inheritance tax (IHT) when a person passes away. These estates are typically those with a total value below the threshold set by the government, known as the nil-rate band. As of my last update in January 2022, the nil-rate band was £325,000, meaning that estates valued below this threshold are not subject to inheritance tax. Additionally, there are specific exemptions and reliefs available for certain types of assets, such as those left to a spouse or civil partner, charitable donations, and assets eligible for business relief or agricultural relief. Estates that fall within these exemptions or reliefs may be considered excepted estates and are not subject to inheritance tax upon the death of the individual. It’s essential to consult with legal or tax professionals for the most up-to-date information on excepted estates and inheritance tax regulations.

An estate that is exempt from the requirement to supply accounts to the Inland Revenue. At the time of writing, the conditions which must be met for an estate to be excepted are:

• the total value is less than 210,000, of which no more than 50,000 is held outside the UK,
• estate is passed by Will, intestacy, nomination or survivorship, and
• the deceased must have been domiciled in the UK, and
• the deceased must have made no gifts that are subject to capital transfer tax or inheritance tax, or granted any Life interest in property.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.