Inheritance Tax Calculator 2026
Estimate the inheritance tax (IHT) due on a UK estate. Accounts for the nil-rate band, residence nil-rate band, spousal exemption, charitable donation relief, and business or agricultural relief.
Inheritance Tax Calculator
Charitable legacies reduce the estate; if ≥10% of net estate, rate drops to 36%
Inheritance tax payable
£110,000
Effective rate: 18.33% on total estate
Breakdown
- Net estate (after deductions)
- £600,000
- Nil-rate band used
- £325,000
- Taxable portion
- £275,000
- Rate applied
- 40%
This is an estimate based on current HMRC rates and thresholds. It does not constitute tax or legal advice. Consult a qualified solicitor or tax adviser for your specific circumstances.
How inheritance tax works in the UK
Inheritance tax is a tax on the estate (property, money, and possessions) of someone who has died. Currently set at 40%, it applies to the portion of the estate above the nil-rate band threshold of £325,000. The tax must be paid — or at least the non-property portion — before probate is granted, typically within 6 months of death.
Property is often the largest component of an estate, and IHT on property can be paid in annual instalments over 10 years, which provides some relief for executors who cannot immediately sell a property to fund the bill. HMRC charges interest on any outstanding instalments.
IHT thresholds and allowances (2025–26)
| Allowance | Single person | Couple (combined) |
|---|---|---|
| Nil-rate band (NRB) | £325,000 | £650,000 |
| Residence nil-rate band (RNRB) | £175,000 | £350,000 |
| Total maximum threshold | £500,000 | £1,000,000 |
The RNRB is subject to tapering for estates valued above £2,000,000 — it reduces by £1 for every £2 the estate exceeds that threshold.
Frequently asked questions
- How much is inheritance tax in the UK?
- Inheritance tax (IHT) in the UK is charged at 40% on the value of an estate above the nil-rate band threshold. If the deceased leaves at least 10% of their net estate to charity, a reduced rate of 36% applies. IHT does not apply to transfers between spouses or civil partners, who are fully exempt.
- What is the nil-rate band for inheritance tax?
- The standard nil-rate band (NRB) is £325,000 per person. If a spouse or civil partner did not use their nil-rate band on death (for example, because they left everything to the surviving partner), the unused NRB can be transferred, effectively doubling the threshold to £650,000 for the surviving partner's estate.
- What is the Residence Nil Rate Band (RNRB)?
- The Residence Nil Rate Band is an additional IHT allowance of £175,000 per person, available where a main residence is left to direct descendants (children, grandchildren, stepchildren). When combined with a transferred RNRB from a deceased spouse, this can add up to £350,000 to the estate's tax-free threshold, bringing the total allowance for couples to £1,000,000.
- Is a spouse exempt from inheritance tax?
- Yes. Transfers between spouses and civil partners who are both UK domiciled are fully exempt from inheritance tax, regardless of the value of the estate. This means no IHT is payable on death when assets pass directly to a surviving spouse or civil partner.
- How can I reduce the inheritance tax on my estate?
- Common strategies to reduce IHT include: making use of annual gifting allowances (£3,000 per year, plus smaller gift exemptions), leaving at least 10% of your net estate to charity to qualify for the 36% reduced rate, using trusts to remove assets from your estate, and ensuring your main residence is left to direct descendants to qualify for the Residence Nil Rate Band. Specialist advice from a solicitor or financial adviser is strongly recommended.
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