Unmarried Partner IHT Calculator
Calculate the inheritance tax exposure for unmarried cohabiting couples. Unlike married couples, there is no spouse exemption — IHT applies from £1 above the nil-rate band.
Unmarried Couple IHT Exposure
Unmarried couples (including long-term cohabitees) have no spouse/civil partner IHT exemption. Transfers between unmarried partners on death are subject to IHT above the nil-rate band, unlike married couples who benefit from unlimited spousal exemption.
£325,000 standard NRB (no RNRB for partner — only available for direct descendants)
Frequently Asked Questions
Do unmarried couples get the spouse IHT exemption?
No. The spousal/civil partner exemption (IHTA 1984 s.18) applies only to legally married couples and registered civil partners. Unmarried cohabitees — even those who have lived together for decades — receive no automatic IHT exemption on transfers between them.
What IHT does an unmarried partner pay?
An unmarried partner receives an inheritance like any other non-exempt beneficiary. The deceased's estate pays IHT at 40% on anything above the nil-rate band (£325,000) that is not going to a spouse/charity. The surviving partner does not inherit the transferable nil-rate band.
Can unmarried couples claim the Residence Nil-Rate Band (RNRB)?
No. The RNRB (up to £175,000 in 2025-26) is only available when leaving a main residence to direct descendants (children, grandchildren). An unmarried partner is not a direct descendant, so RNRB does not apply to assets passing to them.
How can unmarried couples reduce IHT exposure?
Options include: (1) getting married or entering a civil partnership — most powerful single action; (2) making use of available nil-rate band (£325,000) in wills; (3) life insurance written in trust for the partner to cover the IHT liability; (4) lifetime gifts (7-year rule applies); (5) joint tenancy of property (passes automatically).
Does jointly owned property avoid IHT for unmarried couples?
Property held as joint tenants passes automatically to the survivor outside the estate (right of survivorship). However, the deceased's share is still valued and included in their estate for IHT. The survivorship avoids probate but does not exempt the value from IHT.
Can I leave a pension to an unmarried partner IHT-free?
Yes. Pensions that are not included in the estate (discretionary trusts — most modern pension schemes) can be left to an unmarried partner free from IHT. The pension trustees exercise discretion but typically follow the member's Expression of Wishes. Note: from April 2027, pension pots will be brought within IHT.
What is an Inheritance Act claim for cohabitees?
Under the Inheritance (Provision for Family and Dependants) Act 1975, a cohabitee who lived with the deceased for at least 2 years can apply to court for 'reasonable financial provision' from the estate. This is a legal claim, not automatic — it requires court action and involves legal costs.
What happens to an unmarried partner if there is no will?
If there is no will (intestacy), an unmarried partner receives nothing under the rules of intestacy in England and Wales. Assets pass to children, parents, siblings, etc. The surviving partner may need to make an Inheritance Act claim for maintenance — a costly and uncertain process.