UK Inheritance Tax Calculator
Estimate inheritance tax with the nil-rate band, the residence nil-rate band and a spouse's unused allowance.
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How to do it
- 1Fill in the boxes
Type your numbers or pick the options you need.
- 2See the result
The answer updates right away as you change a value.
- 3Use it
Copy the result or note it down. Nothing is sent anywhere.
About this tool
Enter the value of the estate and the part that is the family home passed to children or grandchildren. Tick the spouse option if a late spouse's allowance can be transferred. The tool applies the £325,000 nil-rate band, up to £175,000 residence band and 40 percent on the rest. Rates and thresholds are for the 2026-27 tax year and can change. A guide only, check gov.uk for the official figures.
The allowances
Everyone has a £325,000 nil-rate band. A home left to direct descendants adds a residence nil-rate band of up to £175,000, which tapers away by £1 for every £2 the estate is over £2 million. A surviving spouse can use their late partner's unused allowances, which doubles the figures.
Example
A £650,000 estate with a £300,000 home passed to children and no spouse has £500,000 of allowances, so £150,000 is taxed at 40 percent, a bill of £60,000.
Not included
Gifts made in the last seven years, trusts, business and agricultural relief and the reduced 36 percent rate for charity gifts are not modelled. Take advice for a larger estate.
Frequently asked questions
Is there IHT between spouses?
Not on transfers to a UK-domiciled spouse. The unused allowance moves to the survivor.
What is the residence nil-rate band?
An extra allowance of up to £175,000 when a home is left to children or grandchildren.
Do gifts count?
Gifts made within seven years before death can be added back. Gifts from normal income and small gifts may be exempt.
Who pays the tax?
The estate pays it before assets pass on, usually by the executors.