Inheritance Tax Estimator
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Estimate your potential UK Inheritance Tax liability using current Nil-Rate Band and Residence Nil-Rate Band thresholds.
Estimates only – not tax advice. For planning purposes only; does not replace professional advice or official HMRC calculations. Full disclaimer
Estate Details
Estimates IHT on your estate alone
Value of main home included in total estate (0 if renting)
RNRB applies when main residence passes to direct descendants
Gifts in Last 7 Years
Total gifts above annual exemptions (£3,000/year) made in last 7 years
Estimated IHT Liability
Inheritance Tax Due
£0
at 40% on taxable estate
Good news! With allowances of £500,000.00 covering your estate of £500,000.00, no IHT is due.
Allowances Breakdown
Nil-Rate Band (NRB)
Residence Nil-Rate Band (RNRB)
Estate Breakdown
Total estate: £500,000.00
Planning Hints
- Estates under £325,000 (NRB) generally pay no IHT.
- With RNRB, individuals leaving a home to children can pass up to £500,000 tax-free.
- Married couples/civil partners can combine allowances for up to £1,000,000 tax-free.
- Gifts made more than 7 years before death fall outside your estate.
- Annual exemption allows £3,000 of gifts per year without using NRB.
- Assets left to a spouse or civil partner are exempt from IHT.
Assumptions used in this calculation (click to expand)
What this calculator assumes
- Estate value entered is the net estate at death (after debts and funeral expenses).
- NRB of £325,000 and RNRB of £175,000 applied per individual unless tapered.
- Transferable NRB / RNRB applied where toggled — assumes full unused band from earlier spouse.
- RNRB taper begins at £2m estate value and removes £1 for every £2 over.
- Charity rate (36%) is not auto-applied — manual selection only.
Not included in this calculation
- Lifetime gifts and the 7-year taper (PETs).
- Business Relief and Agricultural Relief (90/10% reform takes effect April 2026 — not modelled).
- Trust IHT (relevant property regime, periodic charges).
- Domicile / long-term-resident (LTR) status post-April 2025 reform.
- Quick succession relief and double-tax treaty relief.
Statutory basis
IHTA 1984 s.7 (rates)IHTA 1984 ss.8A–8M (transferable nil-rate band)IHTA 1984 ss.8D–8M (residence nil-rate band)
How this is calculated (click to show the formula)
IHT computation
IHT = max(0, Estate − NRB − Transferred NRB − RNRB − Transferred RNRB) × 40%
Allowances stack and reduce the estate before the 40% rate applies. RNRB requires a qualifying residential interest passing to direct descendants.
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