Skip to content
Toolbench

UK inheritance tax calculator

Calculate UK Inheritance Tax (IHT) with £325k nil-rate band, £175k residence nil-rate band, 40% rate (or 36% for charity) and estate taper over £2M.

In your browser

£
Total value of property, money and investments minus debts
10%+ reduces IHT rate from 40% to 36%
Quick estate values:
Total Inheritance Tax (IHT) Payable
IHT Tax Rate Applied

36% reduced charitable rate
Total Tax-Free Allowance

NRB (£) + RNRB (£)

Taxable Estate Value

Amount above tax-free band

Charitable Legacy

100% exempt from IHT

Net Passed to Beneficiaries

After all IHT and donations

About this tool

Calculate UK Inheritance Tax (IHT) liability on your estate. Computes the statutory £325,000 Nil-Rate Band (NRB), the £175,000 Residence Nil-Rate Band (RNRB) when passing a home to direct descendants, spouse allowance transfers, the £2 million estate taper threshold, and the 36% reduced rate for charitable gifts.

How to use it

  1. 1 Enter the total net value of the estate (property, savings, investments minus debts).
  2. 2 Select whether the home is left to children or grandchildren to include the £175,000 RNRB.
  3. 3 Specify if unused spouse or civil partner allowances are being transferred.
  4. 4 Enter the percentage of net estate left to registered charities (10%+ qualifies for 36% rate).
  5. 5 Review your total tax-free allowances, taxable estate, IHT tax due, and net inheritance passed to beneficiaries.

Questions

What is the UK Inheritance Tax threshold?

The standard Nil-Rate Band is £325,000. If you leave a residential home to direct descendants (children or grandchildren), you get an additional Residence Nil-Rate Band of up to £175,000, creating an individual tax-free allowance of £500,000 (£1,000,000 for married couples).

What is the IHT rate in the UK?

The standard rate of Inheritance Tax is 40% on the portion of your estate above the tax-free threshold. If you leave at least 10% of your net estate to charity, the rate drops to 36%.

How does the £2 million IHT taper work?

If an estate is valued over £2,000,000, the Residence Nil-Rate Band is tapered down by £1 for every £2 of estate value above £2M.

Is my data uploaded?

No. This tool runs in your browser, so your text and files never reach our server.

Is this tool free?

Yes. It’s free to use with no sign-up and no limits for normal use.