Inheritance tax calculator
Adjust the estate figures to see a live estimate using the current UK allowances.
This is general guidance, not tax or legal advice. IHT calculations can be affected by lifetime gifts, trusts, business and agricultural relief, and other factors not included here. Please speak to a solicitor or STEP-qualified practitioner before acting.
About the estate
Everything owned: property, savings, investments, possessions, pensions in the estate, less debts and funeral costs.
Used to work out the residence nil-rate band (an extra £175,000 allowance). Enter 0 if no home, or the home isn't going to direct descendants.
Charitable gifts are exempt. Leaving 10% or more of the taxable estate to charity drops the rate from 40% to 36%.
Estimated inheritance tax
£70,000
Based on a 40% rate on £175,000 of taxable estate.
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How we got there
Total estate value
£500,000
Nil-rate band
£325,000
Residence nil-rate band used
Not used, no home passing to direct descendants.
£0
Total tax-free allowance
£325,000
Taxable amount
£175,000
IHT rate applied
40%
Estimated IHT
£70,000
The rules this uses
- •Nil-rate band: £325,000 per person (frozen until April 2030)
- •Residence nil-rate band: up to £175,000 when a main home passes to children or grandchildren
- •RNRB tapers by £1 for every £2 the estate is over £2,000,000
- •Standard IHT rate: 40% on the taxable amount. Reduced to 36% if 10% or more of the baseline amount is left to charity
- •Anything left to a spouse or civil partner is exempt; unused allowances can transfer
Not covered here: lifetime gifts (the 7-year rule and taper relief), business or agricultural relief, trusts, and the planned changes to pensions and agricultural property from April 2027.
