Free tool
Inheritance Tax Calculator
Estimate the inheritance tax on an estate in seconds. It handles the nil-rate band, the residence nil-rate band and its taper on larger estates, transferable allowances from a late spouse, and the reduced rate for charitable estates.
Everything owned at death: property, savings, investments, less debts.
A home (or a share worth at least £175,000) passing to direct descendants unlocks the residence nil-rate band.
If a spouse or civil partner died and left everything to you, their unused nil-rate bands can double yours.
Leaving 10% or more to charity cuts the rate from 40% to 36%.
2026/27 rates and bands. Indicative only: reliefs (business, agricultural), trusts and lifetime gifts can change the result significantly.
Estimated inheritance tax
- Estate value
- GBP 800,000
- Nil-rate band
- GBP 325,000
- Residence nil-rate band
- GBP 175,000
- Total tax-free
- GBP 500,000
- Taxable estate
- GBP 300,000
- Rate applied
- 40%
- On these figures the estate would owe about GBP 120,000 in inheritance tax, an effective rate of 15.0% of the estate.
- Available allowances: a GBP 325,000 nil-rate band, plus a residence nil-rate band of GBP 175,000.
- This is an indication only. A married couple can combine allowances to pass on up to GBP 1m, and reliefs, trusts and lifetime gifts can change the position materially.
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How inheritance tax is worked out
Everyone has a nil-rate band of £325,000. On top of that, a residence nil-rate band of £175,000 is available when a home is left to direct descendants, though it tapers away on estates over £2m, disappearing entirely by around £2.35m to £2.7m. A married couple or civil partners can pass unused bands to each other, so between them they can leave up to £1m before any inheritance tax is due.
Anything above the available bands is taxed at 40%, or 36% if at least a tenth of the net estate goes to charity. This calculator gives an indication; the real figure can shift with business or agricultural relief, trusts, lifetime gifts within seven years, and the new rules bringing pensions into the estate from 2027. That is where planning earns its keep.
A number is not a plan
An estimate tells you the size of the problem. Reducing it, with gifts, trusts, reliefs and the right structure, is what we do, on a fixed fee agreed upfront. Book a free clarity call.