Inheritance Tax Calculator UK
Estimate your UK inheritance tax (IHT) for the 2025/26 tax year. Enter your estate details to see how much IHT may be due, including the nil-rate band, residence nil-rate band, spouse exemption, and charity relief.
2025/26 tax year • Nil-rate band: £325,000 • RNRB: up to £175,000 • IHT rate: 40%
IHT Estimator
The total value of all assets (property, savings, investments, possessions) at the date of death
Value of the main home being left to direct descendants (for the residence nil-rate band)
Total value of gifts (above annual exemptions) made in the 7 years before death
Value of assets passing to a UK-domiciled spouse or civil partner (fully exempt from IHT)
Amount left to qualifying charities (exempt from IHT; 10%+ may reduce rate to 36%)
How to Use This Inheritance Tax Calculator
Enter Estate Details
Enter the total value of the estate, including property, savings, investments, and possessions. Specify the main residence value separately for the residence nil-rate band.
Add Exemptions
Enter any assets left to a spouse or civil partner (fully exempt) and charity legacies. Tick the boxes for the residence nil-rate band and transferred nil-rate band if applicable.
Review Your Estimate
See the full IHT breakdown including nil-rate bands applied, taxable estate amount, IHT liability, and effective tax rate with a visual distribution chart.
2025/26 UK Inheritance Tax Thresholds
Nil-Rate Bands
| Threshold | Amount |
|---|---|
| Standard Nil-Rate Band (NRB) | £325,000 |
| Residence Nil-Rate Band (RNRB) | £175,000 |
| Combined (individual) | £500,000 |
| Combined (couple, with transfer) | £1,000,000 |
Thresholds frozen at current levels until April 2030. RNRB requires leaving your main home to direct descendants.
IHT Rates
| Condition | Rate |
|---|---|
| Estate within nil-rate band | 0% |
| Standard rate (above threshold) | 40% |
| Reduced rate (10%+ to charity) | 36% |
Assets left to a spouse/civil partner or charity are fully exempt from IHT. The reduced 36% rate applies when at least 10% of the net estate is left to qualifying charities.
Residence Nil-Rate Band Taper
| Net Estate Value | RNRB Available |
|---|---|
| Up to £2,000,000 | Full (£175,000) |
| £2,000,000 to £2,350,000 | Reduced (taper applies) |
| Above £2,350,000 | £0 |
The RNRB is reduced by £1 for every £2 the net estate exceeds £2,000,000. For couples with transferred RNRB, the maximum combined RNRB is £350,000.
How UK Inheritance Tax Is Calculated
IHT = (Net Estate - NRB - RNRB) x 40%UK inheritance tax is charged at a flat rate of 40% on the value of an estate that exceeds the available nil-rate bands. Unlike income tax, IHT is not progressive - the entire taxable amount is charged at the same rate.
The calculation steps are:
- Calculate the gross estate - total value of all assets including property, savings, investments, and possessions, plus any chargeable gifts made in the 7 years before death
- Deduct exempt transfers - assets passing to a UK-domiciled spouse/civil partner and qualifying charity legacies are fully exempt
- Apply the nil-rate band (£325,000) - the first portion of the net estate is tax-free. Can be doubled to £650,000 if transferring unused NRB from a deceased spouse/civil partner
- Apply the residence nil-rate band (up to £175,000) - available when the main home passes to direct descendants. Tapers for estates over £2,000,000
- Calculate IHT - charge 40% (or 36% with charity relief) on everything above the combined nil-rate bands
Gift Taper Relief (not included in this calculator)
Gifts made 3-7 years before death benefit from taper relief, which reduces the IHT on those gifts: 3-4 years (80% of full rate), 4-5 years (60%), 5-6 years (40%), 6-7 years (20%). Gifts made more than 7 years before death are completely exempt. This calculator treats all gifts within 7 years at the full rate for simplicity.
RNRB Taper Formula
If net estate > £2,000,000: RNRB reduction = (Net estate - £2,000,000) / 2The RNRB is completely eliminated when the net estate exceeds £2,350,000 (or £2,700,000 for couples with transferred RNRB).
Frequently Asked Questions
What is the inheritance tax threshold for 2025/26?
The standard nil-rate band for inheritance tax in 2025/26 is £325,000. This means the first £325,000 of your estate is IHT-free. If you leave your main residence to direct descendants (children or grandchildren), you may also qualify for the residence nil-rate band of up to £175,000, giving a potential total threshold of £500,000. For married couples and civil partners, unused allowances can be transferred, potentially doubling the thresholds to £650,000 (NRB) or £1,000,000 (NRB + RNRB).
What is the residence nil-rate band (RNRB)?
The residence nil-rate band is an additional IHT allowance of up to £175,000 available when you leave your main home to direct descendants such as children, stepchildren, adopted children, foster children, or grandchildren. The RNRB is tapered for estates worth more than £2 million, reducing by £1 for every £2 above that threshold. It is fully eliminated when the estate exceeds £2,350,000. Like the standard nil-rate band, any unused RNRB from a deceased spouse or civil partner can be transferred.
How are gifts treated for inheritance tax?
Most gifts made in the 7 years before death are potentially chargeable to IHT. Gifts made 3 to 7 years before death benefit from taper relief, which reduces the IHT payable on those gifts: 3-4 years (32% IHT), 4-5 years (24%), 5-6 years (16%), and 6-7 years (8%). Gifts made more than 7 years before death are completely exempt. There are also annual exemptions: each person can give away £3,000 per year free of IHT, plus small gifts of up to £250 per recipient per year, and wedding/civil partnership gifts up to certain limits.
Is inheritance tax payable on assets left to a spouse or civil partner?
No. Assets left to a spouse or civil partner who is UK-domiciled are completely exempt from IHT, regardless of the amount. This is known as the spouse exemption. Additionally, any unused nil-rate band from the first spouse to die can be transferred to the surviving spouse, potentially doubling their available threshold. The spouse exemption applies to both married couples and registered civil partners, but not to unmarried cohabiting partners.
Can leaving money to charity reduce my inheritance tax rate?
Yes. If you leave at least 10% of your net estate (after deducting debts, exemptions, and the nil-rate band) to qualifying charities, the IHT rate on the remaining taxable estate is reduced from 40% to 36%. This means that in some cases, leaving more to charity can actually result in your beneficiaries receiving more overall, because the reduced rate more than compensates for the charitable donation.
Important Disclaimer
This calculator provides estimates for the 2025/26 tax year based on HMRC inheritance tax thresholds. It does not account for taper relief on gifts, business property relief (BPR), agricultural property relief (APR), qualifying interest in possession trusts, the domicile rules for non-UK assets, or debts and funeral expenses. The nil-rate band and residence nil-rate band are assumed to be fully available (not used by earlier gifts or trusts). Results are for illustrative purposes only. For official IHT calculations, consult HMRC, a solicitor, or a qualified tax adviser.