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Inheritance Tax Calculator

Inheritance Tax is charged at 40% on estates above the available nil-rate bands. Leaving a home to children or grandchildren and transferring a late spouse's unused bands can raise the tax-free amount to £1 million.

Tax year 2026/27 · Estimates, not personal tax advice

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Estimated Inheritance Tax

£100,000

Charged at 40% on £250,000
Net estate£750,000
Nil-rate band£325,000
Residence nil-rate band£175,000
Left to charity£0
Chargeable estate£250,000
Inheritance Tax£100,000

Excludes lifetime gifts, trusts and business or agricultural relief. The 36% charity-rate calculation is a simplified single-estate estimate; separate estate components require HMRC's baseline calculation.

Rates and rules used

Tax year 2026/27

Default year 2026/27 (6 April to 5 April). 2025/26 and 2024/25 figures are kept for comparison where the calculator offers a year choice.

Independent site, not affiliated with HMRC. Always check GOV.UK for the latest figures.

How this calculation works

  1. 01Deduct debts from the estate.
  2. 02Deduct charity gifts, the nil-rate band and any residence nil-rate band.
  3. 03Taper the residence band for estates above £2 million.
  4. 04Tax the rest at 40%, or 36% if at least 10% goes to charity.

Real payroll can differ because tax and NI are worked out per pay period, and your tax code may include adjustments HMRC hasn't told you about. See our methodology.

What this doesn't include

Gifts in the seven years before death, trusts, business and agricultural relief, and pensions (which are due to come into scope from April 2027) all need separate treatment. Treat this as an early estimate and take advice for real planning.

Understanding your inheritance tax calculator result

The estimate compares the net estate with the nil-rate bands selected and applies the relevant rate to the remainder. It is an early planning figure because gifts, trusts, reliefs and domicile can materially change the final position.

Reviewing an estate plan

Scenario: Add property, savings and investments, then deduct enforceable debts. Indicate spouse transfers, a qualifying home passed to direct descendants and charitable gifts where applicable.

How to use the result: Use the estimate to identify whether professional advice or updated wills may be worthwhile. Do not divide assets among beneficiaries before accounting for debts, exemptions and administration costs.

Details to check before relying on the estimate

  • Keep a record of gifts made during the relevant period.
  • Business and agricultural assets may qualify for separate relief.
  • The residence band has conditions and can taper for larger estates.

Putting the estimate into perspective

Use the estimate to organise questions and records for estate planning. It does not determine what each beneficiary will receive after administration, debts and other obligations.

Frequently asked questions

Is there Inheritance Tax between spouses?

No. Transfers to a UK-domiciled spouse or civil partner are exempt, and unused nil-rate bands pass to the survivor.

Check it on GOV.UK: Inheritance Tax (opens GOV.UK in a new tab)

Who pays Inheritance Tax?

It is normally paid from the estate by the executors before assets are distributed. Some gifts made within the seven years before death can also become chargeable.

Check it on GOV.UK: Inheritance Tax (opens GOV.UK in a new tab)

Can unused allowances pass to a spouse?

Yes. Unused nil-rate band can normally transfer to a surviving spouse or civil partner, but the claim must be made correctly. Seek professional advice for a large estate.

Check it on GOV.UK: Inheritance Tax (opens GOV.UK in a new tab)

Related calculators

Related guides

  • Inheritance Tax Explained — How UK Inheritance Tax works: the nil-rate bands, spouse exemption, gifts and the seven-year rule, and upcoming changes.