Inheritance Tax Calculator
Estimate Inheritance Tax on an estate, including the residence band.
Your details
Property, savings, investments and belongings.
The share of a home passing to direct descendants.
Inheritance Tax
£96,000
At 40% on the amount above the tax-free bands
- Net estate
- £740,000
- Nil-rate band
- £325,000
- Residence nil-rate band
- £175,000
- Taxable amount
- £240,000
- Tax at 40%
- £96,000
2026/27 thresholds: £325,000 nil-rate band and £175,000 residence nil-rate band, both frozen. Gifts made in the 7 years before death, trusts and business or agricultural relief are not included. Unused pension funds are due to count from April 2027. Get professional advice for a real estate.
How it is worked out
- 1Debts and funeral costs come off the estate first. Anything left to a spouse, civil partner or charity is exempt.
- 2The first £325,000 is covered by the nil-rate band, plus up to £175,000 more when a home passes to direct descendants.
- 3Unused bands from a late spouse can be added. The residence band shrinks by £1 for every £2 the estate is over £2 million.
- 4Tax is 40% on the rest, or 36% if at least 10% of the baseline amount goes to charity.
Worth knowing
- Gifts in the 7 years before death, trusts and business or agricultural relief are not included.
- Get professional advice for a real estate.
Common questions
How much can I leave before Inheritance Tax?+
Usually £325,000, or up to £500,000 if your home goes to your children or grandchildren. A married couple or civil partners can pass on up to £1 million between them.
Sources
The rules and figures behind this calculator come from:
Results are simplified estimates using 2026/27 thresholds. They are not legal or tax advice. Lifetime gifts, trusts and reliefs can change the tax due; take professional advice.
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