UK Inheritance Tax Calculator

Estimate your UK Inheritance Tax liability in 60 seconds, using the current HMRC thresholds for the 2026/27 tax year. No sign-up. No email. The figures are recalculated as you change the inputs.

Estimate based on the 2026/27 thresholds: £325,000 nil-rate band, £175,000 residence nil-rate band, 40% IHT rate above allowances. The residence nil-rate band tapers if your estate exceeds £2 million. This calculator applies that taper. It does not account for business or agricultural reliefs, gifts made within seven years before death, trusts, or non-domicile rules.

How the calculation works

The nil-rate band — £325,000

Every UK estate gets a basic allowance of £325,000 free of Inheritance Tax. This figure is frozen until at least April 2030 (per HM Treasury). Estates below £325,000 pay no IHT.

The residence nil-rate band — £175,000

An additional allowance applies when the main home is left to a "direct descendant" — children (including step, adopted, fostered), grandchildren, or great-grandchildren. The exact amount is the lower of (a) £175,000 or (b) the value of the home being passed on. HMRC guidance sets out the conditions in detail.

The taper

For estates above £2,000,000, the residence nil-rate band tapers by £1 for every £2 above the threshold. An estate worth £2.35m loses the residence allowance entirely.

The transferable nil-rate band (married couples only)

When a married person or civil partner dies, any unused portion of their nil-rate band transfers to the surviving spouse. A widow or widower can therefore have up to £650,000 of nil-rate band, plus £350,000 of residence nil-rate band — £1m in total. This transfer is unavailable to unmarried couples.

The 40% rate

IHT is charged at 40% on the value of the estate above the available allowances. The rate falls to 36% if at least 10% of the estate is left to charity.

How a will reduces your IHT exposure

A properly structured will doesn't avoid IHT — it makes sure your estate uses every allowance you're entitled to. The most common avoidable IHT costs come from:

• Not leaving the home to direct descendants. Bypassing the £175,000 residence nil-rate band costs up to £70,000 in unnecessary IHT for a single person, or £140,000 for a married couple.
• Failing to claim the transferable nil-rate band on the second death of a married couple. Common when the executor doesn't know to claim it.
• Leaving everything to a non-spouse partner without IHT planning. An unmarried partner inherits with no spousal exemption — the full IHT becomes payable.
• Holding pensions and life insurance inside the estate rather than in trust — both can usually be moved outside the estate with paperwork.

Frequently asked questions

What is the UK Inheritance Tax threshold in 2026?

£325,000 standard nil-rate band, plus £175,000 residence nil-rate band when leaving the main home to direct descendants. Married couples can combine and transfer allowances, taking the maximum to £1,000,000.

What rate is UK Inheritance Tax charged at?

40% on the value of the estate above the available allowances. Reduced to 36% if 10%+ of the estate is left to charity.

Is this calculator accurate?

It uses current HMRC 2026/27 thresholds and the standard rules. It produces an estimate. It does not account for trusts, reliefs, gifts within the 7-year rule, or non-domicile rules.

Why does the residence nil-rate band only apply to direct descendants?

The £175,000 RNRB was introduced in 2017 specifically to protect family homes passed to children and grandchildren. It does not apply when the home is left to a sibling, partner (unmarried), niece, nephew, or unrelated person.

Does this calculator work for Scotland and Northern Ireland?

IHT is a UK-wide tax administered by HMRC, so the thresholds and rates are the same across England, Wales, Scotland, and Northern Ireland. Inheritance rules under intestacy and confirmation/probate processes differ — but the IHT calculation does not.