UK · Estates
UK Inheritance Tax calculator.
Estimate the Inheritance Tax on an estate using the nil-rate band, residence nil-rate band, spouse transfer and the 36% charity rate. Runs in your browser; nothing is sent anywhere.
Rates and bands checked against GOV.UK and legislation.gov.uk on 30 September 2026. Informational only, not legal or tax advice.
The estate
Estimate
Enter the estate to see the estimated tax.
Worked example
A widow dies with a net estate of £800,000 including a £400,000 home left to her children, and no unused allowance from her late husband. Nil-rate band £325,000 plus residence nil-rate band £175,000 (the lower of £175,000 and £400,000) gives £500,000. The taxable amount is £300,000 and the tax at 40% is £120,000. If her husband had used none of his allowances, 100% of each is added: £650,000 plus £350,000 is £1,000,000, so no tax is due.
Formula and sources
- Nil-rate band: £325,000, plus the unused percentage from a late spouse or civil partner (up to 100%). GOV.UK: Inheritance Tax
- Residence nil-rate band: lower of £175,000 (plus unused percentage) and the value of the home passing to direct descendants. GOV.UK: residence nil-rate band
- Taper: the residence band falls by £1 for every £2 the estate (assets less debts, before exemptions and reliefs) exceeds £2,000,000. It applies to the combined allowance including any transferred amount. IHTA 1984 s.8D
- Rate: 40% on the amount above the bands; 36% where the charity gift is at least 10% of the baseline amount. IHTA 1984 Schedule 1A
- Band dates: nil-rate band listed until 5 April 2031, residence band until 5 April 2030. HMRC thresholds table
As-of date: 30 September 2026. This is an estimate for planning. It does not cover lifetime gifts, trusts, business or agricultural relief, the downsizing allowance or foreign assets.
Frequently asked questions
What is the Inheritance Tax threshold in 2026-27?
The nil-rate band is £325,000, fixed from 6 April 2009 and listed by HMRC as in force until 5 April 2031. The residence nil-rate band is £175,000 and is listed as in force until 5 April 2030. Estates at or below the available thresholds normally owe no Inheritance Tax.
When does the residence nil-rate band apply?
When your home, or a share of it, is left to direct descendants such as children, stepchildren, adopted or foster children and grandchildren. The band is the lower of £175,000 and the value of the home passing to them, so £325,000 plus £175,000 gives the £500,000 headline figure.
How does the £2 million taper work?
The residence nil-rate band falls by £1 for every £2 the estate is worth above £2 million. The estate value for this test is assets less debts, with no deduction for spouse exemption or reliefs such as business relief. It is fully gone at £2.35 million for a single £175,000 band.
Can my spouse or civil partner use my unused allowance?
Yes. The unused percentage of the nil-rate band and of the residence nil-rate band from the first death can be added to the survivor's own. Enter the unused percentages from the first estate. The maximum is 100% of each, which gives up to £650,000 and £350,000.
When is the 36% rate used?
When at least 10% of the baseline amount is left to charity. Under Schedule 1A of the Inheritance Tax Act 1984 the baseline is the estate after exemptions, less the available nil-rate band, with the charity gift added back. This tool tests the general component only.
What does this calculator leave out?
Gifts made in the last seven years, trusts, joint-property and settled-property components, business and agricultural relief, pre-owned asset rules, foreign assets and the downsizing allowance. Use it for a first estimate and speak to a solicitor or HMRC for a real estate.
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