Inheritance Tax Calculator
Estimate the Inheritance Tax due on an estate, including the nil-rate and residence nil-rate bands.
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Understanding Inheritance Tax
What this calculator covers and how the numbers are worked out
How it works
This calculator gives an estimate of how much Inheritance Tax (IHT) might be due on an estate, based on its value and the tax-free allowances that apply. It's meant for a rough sense of your position when thinking about estate planning, not as a final figure - IHT rules can get complicated quickly, and the exact amount due depends on the full details of the estate.
IHT is charged at 40%, but only on the part of the estate that's worth more than the available tax-free allowances - not on the whole estate. Everyone has a £325,000 nil-rate band, which is the amount of an estate that can pass on tax-free before the 40% rate starts to apply to anything above it.
If a home is left to children or grandchildren, an additional residence nil-rate band of up to £175,000 may also be available, on top of the £325,000 nil-rate band. Together, that gives a combined allowance of up to £500,000 for someone leaving their home to direct descendants.
As a worked example, imagine a single person's estate is worth £600,000 in total, and their home (worth enough to use the full residence nil-rate band) is left to their children. Their combined allowance is £325,000 + £175,000 = £500,000, leaving £600,000 - £500,000 = £100,000 of the estate taxable. At 40%, that's a tax bill of £40,000.
For very large estates, the residence nil-rate band starts to taper away - it's reduced by £1 for every £2 the estate's total value exceeds £2 million, and it disappears entirely once the estate is large enough. This means the largest estates can end up with just the £325,000 nil-rate band and no residence nil-rate band at all.
Any unused nil-rate band and residence nil-rate band can be transferred between spouses or civil partners. That means a surviving spouse's estate can potentially benefit from up to double the allowances - up to £1 million combined - if none of the first spouse's allowances were used when they died. In the earlier example, if that £600,000 estate belonged to a surviving spouse who had inherited both of their late partner's unused allowances, the whole estate would fall under the combined £1,000,000 allowance and no IHT would be due at all.
Gifts left to a spouse or civil partner, and gifts left to registered charities, are usually exempt from IHT entirely and don't use up any of the nil-rate bands. This is a genuinely complex area of tax, so treat any figure from this calculator as an estimate only - anyone with a large or complicated estate should speak to a solicitor or a qualified financial adviser.
This calculator only looks at the value of your estate at death, but gifts made during your lifetime can also matter. Most lifetime gifts are what's called Potentially Exempt Transfers: if you survive 7 years after making the gift, it falls out of your estate entirely and no IHT is due on it. If you die within those 7 years, the gift is added back into your estate for IHT purposes - though 'taper relief' can reduce the tax rate charged on gifts made 3 to 7 years before death (the rate steps down from 40% to 32%, 24%, 16% and then 8% in the final year before it reaches zero at the 7-year mark). Some gifts, such as normal gifts out of surplus income, can be exempt straight away - this is a detailed area, so anyone doing significant lifetime gifting should get advice.
From April 2027, most unused pension funds and death benefits will be brought into the value of your estate for Inheritance Tax purposes, following changes announced in the Autumn 2024 Budget. Currently, pensions usually sit outside the estate and pass on largely free of IHT - this calculator, like the rest of this site, reflects the rules as they stand for the 2026/27 tax year, so if you're planning further ahead and pensions make up a significant part of what you'd leave behind, it's worth factoring in that upcoming change.
What this calculator covers
- Nil-rate and residence nil-rate bands
- 40% tax on the taxable estate
- Transferable allowance from a late spouse
- How the home-to-children relief works
Common questions
As a single person leaving your home to children or grandchildren, you can typically leave up to £500,000 (the £325,000 nil-rate band plus up to £175,000 residence nil-rate band) before IHT applies. A surviving spouse or civil partner who inherits both partners' unused allowances could have up to £1,000,000 combined.
It's an additional allowance of up to £175,000, on top of the standard £325,000 nil-rate band, available when a home is left to children or grandchildren - it doesn't apply if the home is left to someone else, such as a sibling or friend.
No - it's only charged on the portion of the estate above your available allowances, not the whole thing. An estate worth £600,000 with a £500,000 allowance would only have the remaining £100,000 taxed at 40%.
It can be transferred to the surviving spouse or civil partner, meaning the survivor's estate can potentially use up to double the allowances - up to £1,000,000 combined - if none of the first spouse's nil-rate bands were used.
It can, because it's what triggers the residence nil-rate band of up to £175,000 - leaving your home to someone other than a direct descendant, such as a friend or a sibling, doesn't qualify for this extra allowance.
The residence nil-rate band starts to taper away above £2 million - it's reduced by £1 for every £2 the estate exceeds that threshold - so very large estates can lose some or all of that allowance.
No, gifts left to registered charities are usually exempt from Inheritance Tax entirely, and they don't use up any of your nil-rate bands.
This calculator looks at the value of your estate, not gifts made while you're alive. Most lifetime gifts are Potentially Exempt Transfers - survive 7 years after making one and it's outside your estate entirely; die within 7 years and it's added back in, though taper relief can reduce the tax rate on gifts made 3-7 years before death. It's worth discussing significant gifting with a solicitor.
Not currently - most pensions sit outside your estate. From April 2027, unused pension funds and death benefits are due to be brought into the value of estates for IHT purposes, following rules announced in the Autumn 2024 Budget. This calculator reflects the rules for the 2026/27 tax year, so factor that change in if you're planning further ahead.
No - it's an estimate based on the standard allowances only. Inheritance Tax can involve trusts, business relief, lifetime gifts and other complications this tool doesn't cover, so anyone with a large or complicated estate should speak to a solicitor.
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These results are estimates for general guidance and are not financial advice. Always confirm important figures with an official source.
Rates last reviewed: 2 October 2026 · Built around the 2026/27 UK tax year
Based on 2026/27 UK tax rates. Results are estimates and not financial advice.
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