Inheritance Tax calculator
Estimate the Inheritance Tax on an estate, including the residence nil-rate band and a late spouse’s transferable allowances. 2025/26.
Your estimate
Estimated Inheritance Tax
£0
- Tax-free allowances
- £0
- Taxable estate (40%)
- £0
Uses the £325,000 nil-rate band and £175,000 residence nil-rate band (tapered above a £2m estate). It does not include lifetime gifts, business or agricultural relief, or the reduced 36% charity rate — early planning around these is where we protect the most.
In plain English
The terms, explained
New to this? Here’s what the words on this page actually mean.
- Inheritance Tax
- Tax on the estate — money, property and possessions — of someone who has died, charged at 40% above the allowances.
- Nil-rate band
- The first £325,000 of an estate is tax-free.
- Residence nil-rate band
- An extra £175,000 tax-free if you leave your home to children or grandchildren.
- Transferable allowances
- A surviving spouse or civil partner can inherit their late partner’s unused allowances, doubling them.
FAQ
Inheritance Tax calculator — your questions answered
How much can you inherit tax-free in the UK?
Each person has a £325,000 nil-rate band, plus up to £175,000 more (the residence nil-rate band) if they leave their home to children or grandchildren. A surviving spouse can inherit any unused allowances, so a married couple can often pass on up to £1 million tax-free.
What is the rate of Inheritance Tax?
It’s 40% on the part of an estate above the tax-free allowances. A reduced 36% rate applies if you leave at least 10% of your estate to charity.
How can I reduce Inheritance Tax?
Through lifetime gifting (surviving seven years), using your allowances, trusts, life insurance written in trust, and reliefs such as Business and Agricultural Property Relief. The earlier you plan, the more can usually be protected — we build clients a long-term plan.
What is the residence nil-rate band?
An extra £175,000 of tax-free allowance when you leave your main home to direct descendants (children or grandchildren). It tapers away for estates worth more than £2 million.
Do I pay Inheritance Tax on gifts?
Gifts are usually tax-free if you survive seven years after making them. Larger gifts made within seven years of death may be taxed, on a sliding “taper relief” scale. We can advise on gifting safely.
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