Inheritance Tax Calculator

Calculate your potential Inheritance Tax liability based on current UK legislation (2026/27 tax year)

Estate Value

Enter the total value of all assets in your estate. Separate your main residence from any other property, and separate the mortgage secured on your main residence from other debts so the Residence Nil Rate Band can be estimated using the net equity in the qualifying home.

Main Residence Property Value

Enter the gross value of the home that may qualify for the Residence Nil Rate Band.

Other Property Value

Enter the value of any other residential, buy-to-let, commercial or overseas property.

Savings & Investments

Cash, stocks, bonds, ISAs and non-pension investments

Business & Agricultural Assets

Enter qualifying business and agricultural assets. These are included in the estate value used for the Residence Nil Rate Band taper test, then reduced by simplified Business and Agricultural Property Relief.

Pension Value

Enter the estimated value of unused pension funds and pension death benefits. These are shown separately because most unused pension funds are expected to fall within the IHT estate from 6 April 2027.

Other Assets

Vehicles, jewellery, collectibles, etc.

Mortgage on Main Residence

Enter the mortgage or other debt secured specifically on the main residence. This reduces the qualifying home value used for the Residence Nil Rate Band cap.

Other Outstanding Debts

Enter loans, credit cards and other liabilities not secured on the main residence.

Exemptions & Gifts

Use this section to enter amounts passing to a spouse or civil partner, amounts left to charity, and gifts or transfers made within the last seven years. If the full estate after outstanding debts is expected to pass to a spouse or civil partner, tick the relevant box and the calculator will use that amount automatically. The charity amount is treated as exempt and may also reduce the IHT rate to 36% if it meets the simplified 10% baseline test.

Amount Passing to Spouse or Civil Partner

Enter the amount passing to a spouse or civil partner that is expected to be exempt from Inheritance Tax, or tick the box below to use the full estate after debts. All estate passes to spouse or civil partner
Tick this if the full estate after outstanding debts is expected to pass to a spouse or civil partner. The calculator will use the relevant net estate value automatically.

Amount Left to Charity

Enter the amount left to qualifying charities or qualifying political parties from the estate. If this meets the 10% test, the reduced 36% IHT rate may apply.

Estimated Total PETs in the Last Seven Years

Enter the total value of gifts to individuals made in the last seven years where you do not have the dates available. This simplified entry treats the total as if it was made within the last three years, so any taxable amount is charged at the full 40% rate.

Estimated Total CLTs in the Last Seven Years

Enter the total value of chargeable lifetime transfers, such as gifts into discretionary trusts, made in the last seven years where you do not have the dates available.

I have dates, values and transfer types for gifts in the last 14 years
Tick this to enter each PET and CLT separately. The calculator will order the entries by date, apply the HMRC taper relief schedule where relevant, and allow for earlier transfers when estimating the Nil Rate Band used by failed gifts.

Detailed Gift History: PETs and CLTs

Add each gift or transfer made in the last 14 years using the value at the date it was made. Select whether each transfer was a PET or CLT. Detailed mode disables the two estimated total fields above.

💡 About Gifts and Transfers

Potentially Exempt Transfers: Gifts to individuals are generally outside your estate if you survive for seven years. If death occurs within seven years, they may use part of the Nil Rate Band and may become taxable. If you enter only an estimated total, the calculator treats the PETs as made within the last three years. If you enter dated PETs, taper relief is applied to the taxable part using HMRC's schedule.

Chargeable Lifetime Transfers: Transfers such as gifts into discretionary trusts can use the Nil Rate Band when made. If death occurs within seven years, the transfer can affect the Nil Rate Band available to the estate and may create additional tax.

Detailed gift history: If you have dates and values for PETs and CLTs over the last 14 years, use detailed mode. Earlier transfers can affect how much Nil Rate Band is available to later failed PETs and CLTs, even where those earlier transfers are outside the final seven years.

Allowances & Reliefs

Select which additional allowances apply to your situation.

Main Residence to Direct Descendants
Passing your main home to children or grandchildren may qualify for the Residence Nil Rate Band. The amount used is capped at the net equity in the qualifying main residence after any mortgage secured on it, then tapered where the total estate value after debts exceeds £2 million. The taper is based on the whole estate after debts, not the property value alone.

Transferred Allowances from Spouse or Civil Partner
Select this if unused Nil Rate Band, Residence Nil Rate Band and/or Business and Agricultural Property Relief allowance can be transferred from a late spouse or civil partner. Enter the unused percentage available below.

Transferred Nil Rate Band Percentage

Enter the unused percentage of the late spouse or civil partner's Nil Rate Band to transfer. For example, enter 100 if the full allowance is available, or 0 if none is available.

Transferred Residence Nil Rate Band Percentage

Enter the unused percentage of the late spouse or civil partner's Residence Nil Rate Band to transfer. This only reduces the estimate where a qualifying residence passes to direct descendants.

Transferred Business/Agricultural Relief Percentage

Enter the unused percentage of the late spouse or civil partner's Business and Agricultural Property Relief allowance to transfer. For example, 100% adds a further £2.5 million allowance.

ℹ️ Current Allowances (2026/27)

Nil Rate Band: £325,000, plus any transferable unused percentage from a late spouse or civil partner
Residence Nil Rate Band: Up to £175,000, plus any transferable unused percentage, when leaving a qualifying home to direct descendants. The combined amount is capped at the net equity in the qualifying main residence and tapered for estates over £2 million
Tax Rate: 40% on amount above allowances
Reduced Rate: 36% if 10% or more of estate left to charity
Business and Agricultural Property Relief: For this simplified estimate, qualifying business and agricultural assets receive 100% relief up to £2.5 million, plus any transferred unused percentage from a late spouse or civil partner. Qualifying value above the available 100% relief allowance receives 50% relief.

Note: In this simplified calculator, the Main Residence Property Value less the Mortgage on Main Residence is treated as the qualifying residence value when the main residence option is selected.

Pension comparison: The pension field is excluded from the current-rules estimate and included in the from-6-April-2027 estimate to illustrate the announced change to pension death benefits and unused pension funds.

Your Inheritance Tax Estimate

Estimated Inheritance Tax

Current rules

£0

Excludes pension value from the IHT estate.

From 6 April 2027

£0

Includes the pension value entered in the IHT estate.

Based on current UK tax legislation for 2026/27 and announced pension IHT changes due from 6 April 2027.

Estimated increase from 2027

£0

Additional estimated IHT if the pension value entered falls within the estate from 6 April 2027.

Pension value entered

£0

Used only in the from-6-April-2027 comparison.

Current rules

Pension value excluded from the IHT estate.

Business/agricultural relief applied£0

Applicable IHT rate40%

Available IHT thresholds£0

From 6 April 2027

Pension value included in the IHT estate.

Business/agricultural relief applied£0

Applicable IHT rate40%

Available IHT thresholds£0

ℹ️ Pension comparison

The current-rules column excludes the pension value entered. The from-6-April-2027 column includes the pension value in the estate to illustrate the potential impact of the announced pension IHT changes. Business and agricultural assets are included in the estate value used for the Residence Nil Rate Band taper test before simplified Business and Agricultural Property Relief is deducted. This simplified comparison assumes the pension value entered is within scope of the new rules and is not passing to a spouse, civil partner or qualifying charity.

Inheritance Tax Calculation

This section follows the same calculation flow as the client report, moving from the estate after exemptions through to the estimated Inheritance Tax liability.

Calculation Step	Current rules	From 6 April 2027
Main residence property value	£0	£0
Other property value	£0	£0
Net main residence value used for RNRB cap	£0	£0
Savings and investments	£0	£0
Business and agricultural assets	£0	£0
Other assets	£0	£0
Pension value included in IHT estate	£0	£0
Less mortgage on main residence	£0	£0
Less other outstanding debts	£0	£0
Estate value after debts	£0	£0
Less spouse or civil partner exemption	£0	£0
Business/Agricultural 100% relief allowance available	£0	£0
Less Business and Agricultural Property Relief	£0	£0
Less amount left to charity	£0	£0
Estate after spouse, reliefs and charity exemptions	£0	£0
Lifetime gifts and transfers in the last seven years	£0	£0
Nil Rate Band used by lifetime transfers	£0	£0
Available Nil Rate Band for estate	£0	£0
Residence Nil Rate Band after property cap and taper	£0	£0
Estate value used for Residence Nil Rate Band taper test, before business/agricultural relief	£0	£0
Residence Nil Rate Band taper reduction	£0	£0
Total available IHT thresholds	£0	£0
Taxable estate	£0	£0
Estate amount used for charity 10% test	£0	£0
Required charity legacy for 36% rate	£0	£0
IHT on estate at applied rate	£0	£0
Estimated tax on lifetime transfers, if applicable	£0	£0
Total estimated IHT liability	£0	£0

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Inheritance Tax Calculator