United Kingdom Tax Agency Updates Guidance on Inheritance Tax Thresholds, Interest Rates

The United Kingdom HM Revenue and Customs Dec. 23 updated guidance on inheritance tax thresholds and interest rates. The update includes: 1) a decrease to 7.75 percent from 8 percent in the inheritance tax interest rate; and 2) a decrease to 2.75 percent from 3 percent in the interest rate on repayments from the tax agency of overpaid inheritance tax. The rates are effective Jan. 9, 2026. [United Kingdom, Government Portal, 12/23/25]

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View Updated Guidance on Inheritance Tax Thresholds and Interest Rates. View Announcement. View Index.