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
NRB (£) + RNRB (£)
Amount above tax-free band
100% exempt from IHT
After all IHT and donations
Next in your workflow
Popular uses
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 Enter the total net value of the estate (property, savings, investments minus debts).
- 2 Select whether the home is left to children or grandchildren to include the £175,000 RNRB.
- 3 Specify if unused spouse or civil partner allowances are being transferred.
- 4 Enter the percentage of net estate left to registered charities (10%+ qualifies for 36% rate).
- 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.
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