UK Inheritance Tax Calculator
UK Inheritance Tax is charged at 40% on the value of your estate above your available nil-rate bands. This calculator works out your potential IHT bill using the standard £325,000 nil-rate band and the Residence Nil-Rate Band (RNRB) if leaving a home to direct descendants.
Educational estimate. Calculator results are for planning and information only, not financial, tax, medical, legal, or engineering advice. Verify important decisions with official sources or a qualified professional.
UK Inheritance Tax Calculator
Estate IHT — Nil-Rate Band & RNRB
📐 Formula & Method
IHT Calculation
NRB = £325,000 per person (frozen to 5 April 2028). Married couples can use up to £650,000 with transferred NRB. RNRB = £175,000 per person when leaving a home to direct descendants, tapering by £1 for every £2 of estate value above £2,000,000.
📋 How to Use
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1
Enter total estate value.
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2
Enter property value.
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3
Confirm whether leaving home to descendants and marital status.
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4
See estimated IHT liability and effective rate.
UK Inheritance Tax — Planning to Minimise IHT
Only around 4-5% of UK estates pay IHT, but the proportion is growing as property prices rise against nil-rate bands frozen at £325,000 and £175,000 RNRB until 5 April 2028. Strategies to reduce IHT include making gifts (gifts that survive 7 years become fully exempt), pension planning, and life insurance written in trust.
The Residence Nil-Rate Band (RNRB) of £175,000 is available when you leave a qualifying residential property to direct descendants (children, grandchildren). Combined with the standard NRB and the ability to transfer unused allowances from a deceased spouse, a married couple can potentially shelter up to £1m from IHT.
🔬 Methodology & Accuracy
Formula: Applies standard NRB and RNRB allowances, RNRB taper above £2,000,000, adds gifts within 7 years to the estate, and taxes the remainder at 40%.
Data sources: HMRC nil-rate band and residence nil-rate band thresholds for 6 April 2026 to 5 April 2028, reviewed June 2026.
Last reviewed: June 2026 · General formula used: IHT Calculation · Accuracy: Results are precise to two decimal places using IEEE-754 double-precision arithmetic. Intended for educational and planning use only.
For informational purposes only. Results are estimates based on the inputs and formulas provided. For financial, tax, medical, or legal decisions, consult a qualified professional. Rates and regulations change — always verify current figures with official sources.