About the UK Inheritance Tax Calculator
This UK inheritance tax calculator estimates how much IHT will be due on an estate and how much passes to beneficiaries. Enter the net value of the estate (assets minus debts), the value of the home and whether it goes to children or grandchildren, and any gifts to a spouse, civil partner or charity. It applies the nil-rate band, the residence nil-rate band with its taper, and any allowances transferred from a late spouse.
It is useful for people planning a will, executors doing a first estimate before completing the IHT400, and families checking whether an estate is likely to owe tax at all. You can see how leaving the home to direct descendants, using a late partner’s unused bands, or leaving 10% to charity changes the bill.
Figures are for the 2026/27 tax year, using thresholds frozen until April 2031: a £325,000 nil-rate band, a £175,000 residence nil-rate band that tapers by £1 for every £2 the estate exceeds £2 million, a 40% rate and a reduced 36% rate when at least 10% of the baseline estate goes to charity. Gifts made in the seven years before death use up the nil-rate band first. Not modelled: Business Relief and Agricultural Relief (from 6 April 2026, 100% relief is capped at £2.5 million of qualifying property per person, with 50% relief above that), taper relief on gifts, quick succession relief, the residence nil-rate band downsizing addition, and pensions (brought into IHT from 6 April 2027). If any of these apply, deduct the relieved value from the estate yourself or take professional advice.
With the default inputs, the inheritance tax due is £160,000.00. Change any value above to recalculate instantly.
How to use the uk inheritance tax calculator
- 1Enter the net value of the estate after debts and funeral costs.
- 2Say whether the home goes to children or grandchildren and enter its value.
- 3Add any amounts left to a spouse, civil partner or charity.
- 4Enter chargeable gifts made in the last seven years.
- 5If a spouse died first, enter the percentage of their bands that was unused.
Formula and method
Gifts to a spouse or civil partner (unlimited when both are UK residents for IHT purposes) and to charity are exempt and are deducted first. The nil-rate band (£325,000, increased by any percentage transferred from a late spouse) is reduced by chargeable gifts made in the seven years before death. The residence nil-rate band (£175,000 plus any transferred percentage) is available only when a home passes to direct descendants, is limited to the value of that home, and is reduced by £1 for every £2 the net estate exceeds £2 million.
Whatever remains is taxed at 40%. The residence band shown is capped at the chargeable estate, since it cannot reduce the estate below zero. If charitable gifts are at least 10% of the baseline amount — the estate after exemptions and the nil-rate band, but with the charity gift added back and before the residence band — the rate falls to 36%. Business Relief and Agricultural Relief (100% up to a £2.5 million allowance from 6 April 2026, 50% above), taper relief on lifetime gifts, quick succession relief and the downsizing addition are not included.
- NRB
- £325,000 × (1 + transferred %) − gifts within 7 years
- RNRB
- min(home to descendants, £175,000 × (1 + transferred %) − taper)
- rate
- 40%, or 36% if charity ≥ 10% of the baseline amount
Worked examples
£900,000 estate with the home left to children
The £325,000 nil-rate band and £175,000 residence band cover £500,000. The remaining £400,000 is taxed at 40%, so IHT is £160,000 and beneficiaries receive £740,000.
Surviving spouse using both transferred bands
With 100% of a late spouse’s unused bands transferred, the nil-rate band doubles to £650,000 and the residence band to £350,000 — together exactly £1 million, so no IHT is due.
£2.4 million estate hit by the residence band taper
The estate is £400,000 over £2 million, so the £350,000 residence band is cut by £200,000 to £150,000. With the £650,000 nil-rate band, £1.6 million is taxed at 40% = £640,000.
Leaving 10% to charity for the 36% rate
The baseline amount is £700,000 − £325,000 = £375,000, so a £40,000 charity gift clears the £37,500 (10%) test. The £660,000 left after the gift, less the £325,000 nil-rate band, leaves £335,000 taxed at 36% = £120,600.
Frequently asked questions
What is the inheritance tax threshold in 2026/27?+
The nil-rate band is £325,000 per person, plus up to £175,000 of residence nil-rate band if your home goes to direct descendants. Both are frozen until April 2031, so a married couple can pass on up to £1 million tax-free.
Who counts as a direct descendant for the residence nil-rate band?+
Children, grandchildren and other lineal descendants, including step-children, adopted and foster children, and their spouses or civil partners. Nieces, nephews and siblings do not qualify.
How does the seven-year rule work?+
Gifts to people are potentially exempt. If you die within seven years they use your nil-rate band first; any tax on gifts above the band is reduced by taper relief if made 3–7 years before death.
Can I pass my unused nil-rate band to my spouse?+
Yes. Any unused percentage of the nil-rate band and residence nil-rate band of the first spouse or civil partner to die can be claimed by the survivor’s estate, up to double the current bands.
When is inheritance tax paid?+
IHT is due by the end of the sixth month after the month of death, and interest is charged after that. Tax on property can be paid in ten yearly instalments.
Are pensions subject to inheritance tax?+
From 6 April 2027 most unused pension funds and death benefits are due to be included in the estate for IHT. Before that, most defined contribution pensions fall outside the estate.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.