IHT in Scotland: Is Inheritance Tax Different in Scotland? (2026)
Inheritance tax is the same across the UK — £325,000 nil rate band, 40% rate, £175,000 RNRB. Scottish succession law is different: children have automatic legal rights (legitim) that cannot be defeated by will, and survivorship destinations in property title operate differently from English joint tenancy.
IHT and Succession Law in Scotland
IHT is a UK reserved tax — the same rules apply in Scotland
Inheritance tax is a reserved matter under Schedule 5 of the Scotland Act 1998 — it is set and collected by the UK Government (HMRC), not the Scottish Parliament. The same IHT rules apply throughout the United Kingdom: nil rate band (£325,000 in 2026/27), Residence Nil Rate Band (£175,000 where the home passes to direct descendants), 40% rate above the threshold, spousal exemption (s18 IHTA 1984), 7-year rule for PETs, agricultural and business property reliefs, and all other IHTA 1984 provisions. The Scottish Parliament has no power to change IHT rates, thresholds, or exemptions. IHT returns (IHT400 or IHT205) are submitted to HMRC's Inheritance Tax office regardless of where the deceased was domiciled in the UK. This is a common misconception: many people assume IHT is devolved to Scotland because income tax and some other taxes are partly devolved. IHT is not — it is uniform across England, Wales, Scotland, and Northern Ireland.
Scottish succession law is different: the Succession (Scotland) Act 1964
While IHT is the same, the law governing who inherits in Scotland is fundamentally different from England and Wales. Scotland uses the Succession (Scotland) Act 1964, not the Administration of Estates Act 1925. The key Scottish concepts are: (1) Prior rights: on intestacy (dying without a will), the surviving spouse or civil partner has prior rights to the family home (up to £473,000), furniture (up to £29,000), and financial provision (up to £89,000 or £50,000 depending on whether there are surviving children). (2) Legal rights (ius relictae / ius relicti for spouses; legitim for children): surviving spouses and children have automatic legal rights in the moveable estate regardless of what the will says. Children's legitim is one-third of the net moveable estate (if a spouse also survives) or one-half (if no surviving spouse). These rights cannot be defeated by will — they are automatic unless discharged. (3) Scottish intestacy follows a different order of priority from English intestacy, applying prior rights first, then legal rights, then the general estate. These differences mean that IHT planning in Scotland requires careful attention to how legal rights and prior rights interact with will provisions.
Legal rights (legitim) and IHT: the interaction
A child's legal rights (legitim) — the automatic entitlement to a share of the moveable estate — can create IHT complications. Legitim applies even where the deceased left a will and did not provide for the child. If a child exercises legitim, assets may pass differently from the will — potentially affecting the spousal exemption or the RNRB. Example: a Scottish will leaves the entire estate to the surviving spouse. The children exercise legitim — claiming one-third of the moveable estate. That one-third does not pass to the spouse under the spousal exemption, but directly to the children. The IHT position changes: the children's share is taxable (above any available NRB) on the first death, whereas the spousal exemption would have deferred it to the second death. Conversely, children may choose to discharge legitim (renounce the claim) in exchange for other provision — or to preserve the spousal exemption and RNRB. Whether to exercise or discharge legitim is a financial decision with IHT consequences that requires advice.
The RNRB in Scotland: the same rules, but wills must be drafted correctly
The Residence Nil Rate Band applies in Scotland on exactly the same terms as England and Wales: £175,000 per person (2026/27) where the main residential property is closely inherited by a direct descendant. A Scottish will that leaves the family home to children or grandchildren qualifies for the RNRB. However, if children exercise legitim and claim part of the estate (including part of the value of the home), the 'closely inherited' test may be affected — specialist Scottish IHT advice is needed where legitim and the RNRB interact. Additionally, if the family home is held on a title that includes survivorship destination (a common feature of Scottish property law, equivalent to English joint tenancy), the property may pass automatically to the surviving spouse by survivorship — bypassing the will and potentially the RNRB if the survivor does not leave it to direct descendants.
Scottish wills and deeds of variation
Wills in Scotland are governed by different formality rules from England and Wales: a valid Scottish will must be signed by the testator and witnessed. A holograph will (wholly in the testator's own handwriting and signed) is valid in Scotland without a witness — this has no equivalent in England and Wales (where an unwitnessed will is invalid). Deeds of variation (redirecting inherited assets within 2 years of death for IHT and CGT purposes under s142 IHTA 1984) are available in Scotland as in England. However, where legal rights have been exercised, a deed of variation is more complex — the assets are already redirected by the legal rights claim, and any further variation must take account of what has already been distributed. Scotland does not use 'grants of probate' — instead, the Scottish equivalent is Confirmation, granted by the local Sheriff Court. The IHT must still be paid and settled with HMRC before Confirmation is issued.
IHT planning for Scottish estates: what is different
For IHT planning purposes in Scotland: (1) All IHT rules (NRB, RNRB, spousal exemption, 7-year rule, reliefs) are identical to England and Wales. (2) Wills must be drafted to account for children's legitim rights — a provision discharging legitim in exchange for a legacy (known as a 'forfeiture clause' or 'satisfaction clause') is common. (3) Survivorship destinations in property title need to be reviewed — a survivorship destination can be varied by will if both parties consent during their lifetimes. (4) The interaction of prior rights (on intestacy) with the NRB is important: prior rights may consume most of the moveable estate before the NRB is applied. (5) Scottish solicitors (WS or Notary Public) should be used for Scottish wills — an English solicitor cannot prepare a Scottish will. The NRB, RNRB, spousal exemption, and all other IHT strategies work identically in Scotland — the planning is the same, but the succession law context requires a Scottish-qualified adviser.
Frequently Asked Questions
Is inheritance tax different in Scotland?
No — inheritance tax (IHT) is a UK-wide reserved tax. The same nil rate band (£325,000 in 2026/27), the same 40% rate, the same Residence Nil Rate Band (£175,000), the same spousal exemption, and the same 7-year rule apply in Scotland as in England and Wales. IHT is collected by HMRC and is not devolved to the Scottish Parliament. What is different in Scotland is succession law — who inherits and in what proportions — under the Succession (Scotland) Act 1964.
What is legitim in Scottish succession law?
Legitim (also called 'legal share') is the automatic right of a deceased's children to a share of the moveable estate (cash, investments, personal property — but not heritable property such as land and buildings). Legitim cannot be defeated by will — children have this right regardless of what the will says. The share is one-third of the net moveable estate if a spouse also survives, or one-half if there is no surviving spouse. Children can choose to exercise or discharge legitim. If they exercise it, assets pass directly to them rather than under the will — with potential IHT implications.
Does the RNRB apply in Scotland?
Yes. The Residence Nil Rate Band (£175,000 in 2026/27) applies on exactly the same terms in Scotland as in England and Wales. A Scottish estate where the main home passes to a direct descendant (child, grandchild, step-child) under the will qualifies for the RNRB. The only Scottish-specific complication is where children exercise their legitim rights — which can affect the 'closely inherited' test — or where survivorship destinations in property title cause the home to pass by survivorship rather than under the will.
What is Confirmation in Scotland and how does IHT interact with it?
Confirmation is the Scottish equivalent of a Grant of Probate (England and Wales). It is issued by the local Sheriff Court and authorises the executor to administer the estate. As in England and Wales, IHT must be assessed and (for most assets) paid before Confirmation is issued. The executor completes IHT forms (IHT400 or C1 for small estates) and pays HMRC. The Direct Payment Scheme allows funds to be released from Scottish bank accounts to pay IHT before Confirmation, using the same mechanism as in England and Wales.
Can I make a deed of variation for a Scottish estate?
Yes. Section 142 IHTA 1984 (and s62A TCGA 1992 for CGT) allows a deed of variation to redirect inherited assets within 2 years of death — with IHT and CGT treating the variation as if the deceased had made the redirection. This works in Scotland in the same way as England and Wales. However, where children have exercised legal rights (legitim) and received assets under that claim, the position is more complex — any further variation of those assets requires care and specialist advice.
Note: WillSafe serves England and Wales only
WillSafe will kits are designed for the law of England and Wales. If you are domiciled in Scotland or own property in Scotland, you need a will prepared under Scots law by a Scottish-qualified solicitor or notary. The IHT rules described on this page apply equally to Scottish estates — but the succession law context requires specialist Scottish legal advice.
England and Wales Residents: Start With a WillSafe Will Kit
If you are resident in England and Wales, WillSafe will kits help you structure your estate to use the NRB, RNRB, and spousal exemption correctly — ensuring the family home passes to direct descendants and both thresholds are preserved.
View Will Kits from £39.99