How Much Inheritance Tax Will My Estate Pay? UK
Estimate your UK inheritance tax liability using 2026/27 rates. Includes the nil-rate band (£325,000), residence nil-rate band (£175,000), spouse transfer and the £2m taper. Estimate IHT under the assumptions below.
Standard Nil-Rate Band is £325,000 plus £175,000 Residence Nil-Rate Band for family homes. Married couples combine allowances up to £1,000,000 tax-free, with excess taxed at 40%.
Estate Details
Enter the deceased’s estate after debts, including their home share. Enter lifetime gifts separately below. This estimate assumes the estate passes to non-exempt beneficiaries; it does not calculate spouse or charity legacies, partial allowance transfers, trusts or downsizing relief.
Use this only for an eligible surviving spouse or civil partner whose late partner left both allowances fully unused. Being married alone does not double the allowances. This option assumes full £325,000 NRB and £175,000 RNRB transfers; actual transferable amounts can differ and must be claimed.
Estimated IHT Liability
£0
0% effective IHT rate
Estate Value
£0
Nil-Rate Band
£0
Residence RNRB
£0
Total Nil Rate
£0
Taxable Estate
£0
IHT on Estate
£0
Tax on Gifts
£0
Effective Rate
0%
How Inheritance Tax Works in the UK
Inheritance tax is charged at 40% on the value of an estate above the nil-rate band when someone dies. The nil-rate band has been frozen at £325,000 since 2009. Everything above this threshold is taxed at 40%, making IHT one of the highest-rate taxes in the UK.
The residence nil-rate band (RNRB) adds up to £175,000 per person when a main home is left to direct descendants — children, grandchildren or their spouses. This means a single person leaving their home to children has a combined threshold of £500,000.
For married couples and civil partners, any unused nil-rate band and RNRB transfers to the surviving spouse. This gives a maximum combined threshold of £1,000,000 before any IHT is due. However, for estates exceeding £2 million, the RNRB tapers away by £1 for every £2 above the threshold.
What You Need to Know About IHT
Assets passed to a spouse or civil partner are generally exempt from IHT. Eligible charitable legacies may reduce the IHT rate from 40% to 36% when they meet HMRC's 10% net-estate test, but this calculator does not model that reduction. For deaths on or after 6 April 2026, the combined 100% Business and Agricultural Relief allowance is capped at £2.5 million; qualifying value above the cap generally receives 50% relief. Relief eligibility and caps are not modeled here.
Some outright gifts to individuals are potentially exempt transfers (PETs). If you survive 7 years after making an outright gift, it is generally outside your estate for IHT; gifts with reservation still count, and trust gifts follow separate rules. Gifts made 3-7 years before death may benefit from taper relief, which reduces tax due on chargeable gifts above the available threshold, not the value of the gift. The calculator estimates chargeable gifts entered by age band and does not model trusts, gifts with reservation or other reliefs.
Frequently Asked Questions
What is the inheritance tax threshold for 2026/27?
The nil-rate band is £325,000 per person. Married couples can combine for £650,000. With the residence nil-rate band, a couple leaving their home to children can pass on up to £1 million tax-free.
How much inheritance tax do you pay in the UK?
The standard IHT rate is 40% on the taxable amount. Eligible charitable legacies may qualify for 36% under HMRC rules, but this estimate assumes 40% and does not calculate charitable relief.
What is the residence nil-rate band?
An additional £175,000 allowance when your main home passes to direct descendants. It tapers by £1 for every £2 the estate exceeds £2 million. Married couples can combine for up to £350,000.
Do married couples pay inheritance tax?
Assets passed to a spouse are exempt from IHT. The survivor may claim eligible unused allowances from the late spouse or civil partner. Full transfers can increase the combined threshold to £1 million if the qualifying-home conditions are met and the residence band is not tapered. Being married alone does not double the allowances. This calculator does not model spouse legacies.
Are gifts subject to inheritance tax?
Most outright gifts to individuals are outside the estate if you survive 7 years. Gifts with reservation still count, and some trust gifts follow different rules. Chargeable gifts within 7 years may be taxable; taper relief reduces tax on gifts made 3-7 years before death. Annual exemptions may apply to eligible gifts.
How can I reduce my inheritance tax bill?
Common strategies include lifetime gifts (7-year rule), leaving assets to a spouse, charitable giving to reduce the rate to 36%, using trusts, and business or agricultural property relief. Professional estate planning advice is recommended.