Inheritance Tax Calculator
Estimate the potential IHT liability on an estate's value. Our calculator is updated for the 2025/26 tax year, including all relevant allowances.
Inheritance Tax Calculator
Estimate the IHT liability for an estate in the 2025/26 tax year.
IHT Estimate
Based on 2025/26 rates. This is a simplified estimate.
Total Estimated IHT
£48,000
Net Estate Value
£600,000
Spouse Exemption
-£0
Residence Nil Rate Band Used
-£175,000
Nil Rate Band Used
-£20,000
Taxable Estate
£120,000
Understanding Inheritance Tax (IHT)
Inheritance Tax is a tax on the estate (the property, money, and possessions) of someone who's died. Understanding the key allowances can significantly reduce the amount of tax paid.
The Nil Rate Band (NRB)
The standard tax-free allowance for everyone.
Every individual has an Inheritance Tax allowance, known as the Nil Rate Band (NRB). For the 2025/26 tax year, this is £325,000.
This means the first £325,000 of an estate can be passed on without any IHT being due. Any unused NRB can be transferred to a surviving spouse or civil partner, potentially doubling their allowance to £650,000.
The Residence Nil Rate Band (RNRB)
An extra allowance for passing on the main home.
There's an additional tax-free allowance called the Residence Nil Rate Band (RNRB) if you give away your main home to your children, grandchildren, or other direct descendants.
For 2025/26, the RNRB is £175,000. Like the NRB, any unused RNRB can be transferred to a spouse or civil partner. This makes it possible for a couple to pass on up to £1 million tax-free (£325k NRB + £175k RNRB, doubled).
Key Exemptions & Rules
How giving money away can affect your estate's tax liability.
Spouse/Civil Partner Exemption
Any assets passed to a spouse or civil partner are completely exempt from IHT. This is the most significant exemption available.
Gifts Given Away
Gifts you make to other people within the 7 years before you die may be counted as part of your estate and could be subject to IHT. This is known as the 7-year rule.
Charitable Donations
If you leave 10% or more of your 'net estate' to charity, the IHT rate on the rest of the estate is reduced from 40% to 36%.