One threshold for the whole UK
Inheritance tax is not devolved, so there is no separate Scottish threshold, rate or allowance. Every estate, wherever in the UK the person lived, has a £325,000 nil-rate band taxed at 0%, with 40% charged on the value above it. The residence nil-rate band of up to £175,000 sits on top where a qualifying home passes to direct descendants, which means children, grandchildren, step-children, adopted and foster children. Both bands are frozen until 5 April 2031, so more Scottish estates are drawn in as house prices rise. The residence band is also tapered for larger estates: it falls by £1 for every £2 the net estate exceeds £2 million and is lost entirely at £2.35 million. Our inheritance tax explained guide walks through the full calculation.
Where Scotland is different: confirmation, not probate
The difference is procedural. In England and Wales executors apply for a grant of probate; in Scotland they apply for confirmation from the Sheriff Court, and GOV.UK notes that different probate rules apply north of the border. The inventory of the estate is submitted on form C1, sent to the appropriate Sheriff Clerk or Commissary Office, and a full inheritance tax account on form IHT400 is still needed unless the estate qualifies as an excepted estate with lighter reporting. The tax itself, the thresholds, the exemptions and the 7-year rule on lifetime gifts are all identical to the rest of the UK. Our probate and inheritance tax guide covers the account, the excepted estate rules and the funding options in detail.
Couples, timing and paying the bill
Anything left to a spouse or civil partner passes free of inheritance tax, and whatever part of the £325,000 and £175,000 bands the first to die did not use transfers to the survivor. That is how a couple with a family home can pass on up to £1 million with nothing to pay. The rate drops from 40% to 36% where at least 10% of the net estate is left to charity. The deadline is the same in Scotland as elsewhere: inheritance tax must be paid by the end of the sixth month after the month of death, with HMRC charging interest after that, and in most cases the tax has to be settled before confirmation is granted. Tax on land, buildings and certain business interests can be spread over 10 annual instalments.