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UK Inheritance Tax Estimator

Nil-rate band, residence band, transferable allowances & the 7-year gift rule

📋 Estate details

Estimate: IHT ≈ rate × max(0, chargeable estate − remaining NRB − RNRB) + tax on failed gifts
Assets
£
%
Use 50% for a typical joint tenancy.
£
£
Bank accounts, ISAs, general investment accounts, premium bonds.
£
£
£
Policies not written in trust usually form part of the estate.
£
Shown for completeness — typically outside the IHT estate.
£
Most unused pension funds are outside IHT for deaths before 6 April 2027. From that date they are expected to form part of the estate. Leave the box unchecked for a current-year death.
Liabilities
£
Your share is applied using the beneficial-share percentage above.
£
£
Residence nil-rate band
%
Children, grandchildren, step, adopted or foster children — and certain spouses of those descendants.
Transferable unused bands from a late spouse / civil partner

Enter unused percentage, unused pounds, or drag the slider. 100% means the first spouse used none of that band.

%
or
£
%
or
£
Exemptions on death
£
Usually fully exempt if the survivor is a long-term UK resident.
£
If charity is at least 10% of the baseline amount, the remaining estate is taxed at 36% instead of 40%.
Chargeable gifts in the last 7 years

Enter potentially exempt transfers after annual / small-gift / wedding exemptions. Oldest gifts use the nil-rate band first. Gifts of 7 years or more are ignored.

Description Amount Years ago

Your entries are stored in this browser only and restored next time you open the page.

📊 Results

Estimated IHT due
—
Net estate
—
Tax-free allowances used
—
Taxable death estate
—
Effective rate on net estate
—
Estimated amount passing after tax
—
🛡️ Allowance headroom
Combined NRB + RNRB available
—
Headroom to RNRB taper
—
The residence band starts tapering once the net estate exceeds £2,000,000.
Estate / tax
Allowances & exemptions
Liabilities
Covered by NRB
Excess (may be taxed)

📅 Calculation breakdown

Item Amount Notes
Adjust inputs to see results

How to Use the UK Inheritance Tax Estimator

This free estimator projects Inheritance Tax on a UK death estate using the 2026/27 nil-rate band (£325,000), residence nil-rate band (up to £175,000), transferable unused bands from a late spouse or civil partner, the charity reduced rate, and chargeable gifts made in the seven years before death. Results update as you type. Nothing is sent to a server.

Step-by-Step Guide

1. Enter the estate

Add the main residence (and your beneficial share if the home is jointly owned), other property, savings, possessions, other assets and any life insurance payable to the estate. Life insurance written in trust is recorded but kept outside the taxable estate. Deduct the mortgage (your share is applied automatically), other debts, and funeral costs (a £4,000 default is provided and can be edited).

2. Decide whether the residence band applies

Tick the descendants box if a qualifying home — one the person lived in as a residence — is left to children, grandchildren or other direct descendants. Set the percentage they inherit. Buy-to-let property that was never a residence does not qualify.

3. Add transferable bands and exemptions

If a spouse or civil partner died first, transfer any unused nil-rate band and residence band by percentage or by pounds. Amounts left to a surviving spouse or to charity are deducted as exemptions. A large enough charitable gift can cut the rate on the rest of the estate from 40% to 36%.

4. List gifts from the last seven years

Add each chargeable lifetime gift after the usual exemptions (annual £3,000, small gifts of £250, wedding gifts, regular gifts from surplus income). The estimator uses the official order: oldest gift first against the nil-rate band. Taper relief then reduces tax on any excess, not the value of the gift itself.

Taper rates: 0–3y 40% · 3–4y 32% · 4–5y 24% · 5–6y 16% · 6–7y 8%

5. Read the results

Common scenarios & examples

Scenario: Single person, home to children

Goal: See whether a typical home-plus-savings estate is inside the combined £500,000 allowance.

  1. Main residence £400,000, 100% owned, left 100% to children.
  2. Other assets £250,000, debts £50,000, funeral £4,000.
  3. One gift of £100,000 made 4.5 years ago.
  4. No transferable bands, no spouse or charity gifts.
What the estimator should show
  • Net estate ≈ £596,000
  • Gift uses £100,000 of the £325,000 nil-rate band (no tax on the gift)
  • Remaining NRB ≈ £225,000 plus RNRB £175,000
  • Taxable death estate is modest; IHT is charged at 40% on the excess only

Scenario: Second death with full transferable bands

Goal: Check the £1 million couple capacity when the first spouse used none of their bands.

  1. Set unused NRB and unused RNRB sliders to 100% (or type £325,000 and £175,000).
  2. Leave the home to direct descendants.
  3. Keep the net estate at or below £1,000,000 and below the £2m taper line.

Combined bands can reach £650,000 NRB + £350,000 RNRB. The residence band is still capped at the value of the home closely inherited, and it still tapers above £2 million.

Disclaimer & limitations

Not professional advice: This page is an educational estimator, not a substitute for a solicitor, tax adviser or HMRC forms. Actual IHT depends on the will, valuations, domicile / long-term residence, and how assets are owned.

Assumptions: 2026/27 thresholds — NRB £325,000, RNRB £175,000, taper from £2,000,000, standard rate 40%, reduced rate 36%. Bands are treated as frozen through 5 April 2031. Gifts are PETs valued when given. The residence-band taper uses the net death estate (assets minus liabilities) and does not deduct spouse or charity exemptions. Unused pension funds are included only if you tick the April 2027 box.

Not modelled: downsizing addition, gifts with reservation of benefit, trusts, agricultural or business property relief (including the £2.5 million 100% cap from 6 April 2026), grossing-up of free-of-tax gifts, fall-in-value relief, or excluded foreign property.

Bug reports and suggested improvements

Please email suggestions and bug reports to: inheritancetaxcalc@personalfinances.me, thank you.