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Will my estate pay inheritance tax? (decision tree)

England & Wales · Decision tree · Download PDF

How to use this

Work through the questions using current (2026) thresholds to see whether inheritance tax is likely. This is a guide only — take advice for an accurate assessment.

Work through the tree

Step 1

Is your net estate (after debts) above £325,000?

NoNo inheritance tax.Your estate is within the £325,000 nil-rate band, so no inheritance tax is due.
YesGo to step 2 ↓
Step 2

Are you leaving everything to your spouse/civil partner, or to charity?

YesGenerally no inheritance tax.Gifts to a spouse, civil partner or charity are exempt. Their unused nil-rate band may also transfer to a survivor.
NoGo to step 3 ↓
Step 3

Are you leaving a qualifying home to your children or grandchildren?

YesAdd the residence band — then check the total.You may add up to £175,000, giving up to £500,000 for an individual or £1m for a couple. Compare this to your estate value at step 4.
NoGo to step 4 ↓
Step 4

Is your estate above your total available allowances?

YesInheritance tax is likely due.The excess is taxed at 40% (reduced to 36% if you leave 10%+ of your net estate to charity). Note: from 6 April 2027 most unused pensions also count.
NoNo inheritance tax.Your allowances cover the estate, so no inheritance tax is due.

Possible outcomes at a glance

Sources

  1. Inheritance Tax Act 1984 — legislation.gov.uk
  2. GOV.UK — Inheritance Tax thresholds and rates (NRB £325,000; RNRB £175,000)
  3. HMRC — Inheritance Tax on pensions: technical note (from 6 April 2027)
Reviewed by
ClearLegacy editorial team
Last reviewed
June 2026
Next review
December 2026
Jurisdiction
England & Wales

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E&OE — errors and omissions excepted. This page is general information about the law of England and Wales, drawn from the sources it cites; it is not legal, tax or financial advice and ClearLegacy is not a law firm. Rules, figures and fees change, and we re-check them on the review dates recorded in our claims register. Check the primary source, or take advice, before relying on it for your own circumstances.