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. For a complete financial picture, use this alongside our main take home pay calculator.
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%. Our CGT calculator can also be useful for estate planning.