Free tool
Inheritance tax calculator: estimate your estate's IHT bill
A free tool to estimate your estate's likely inheritance tax bill on 2026/27 rules and see how planning could change it.
Your first answer, in minutes.
See your estate's likely IHT bill and what planning could save. Your headline result shows as you answer, and the full step-by-step breakdown opens on this page.
Inheritance Tax Calculator
What would your estate pay?
Business, farmland or AIM sharesRelief can cut the bill
The value that would qualify for Business Relief, after any non-business assets.
Agricultural value.
50% relief from 6 April 2026.
Business or farm assets you gave away in the last seven years. Usually £0.
Gifts in the last seven yearsOptional
Add gifts of money or assets. Include gifts to trusts up to 14 years ago. Regular small gifts can usually be left out.
Leaving money to charityOptional
Leaving at least 10% can cut the rate on the rest from 40% to 36%.
Assets overseasOptional
If not, assets outside the UK are usually outside UK inheritance tax. Our Residency Checker can test this.
Date to work it out on11 October 2026
Usually today. Try a date after 6 April 2027 to see the effect of pensions coming into the estate.
Estimated inheritance tax
£200,000
About 13% of the estate. Your family keeps about £1,300,000.
An estimate to start a conversation, not advice. It uses the rules described below; we'll check the detail with you on a call.
On this page7 sections
Inheritance tax can take 40% of everything above your allowances. Most people have no idea how close they are. Our calculator gives you a first answer in a few minutes: how much tax your estate might face, which allowances apply and where planning might make a difference.
How the calculator works
You answer a short series of questions: the value of your home and other assets, any debts, gifts you have made, whether you are married or in a civil partnership, who will inherit, whether you own a business and whether you plan to leave money to charity. The tool applies 2026/27 rules and shows you a first result straight away. To see the full breakdown, and receive it by email, you enter your email address.
The assumptions it makes
- Rate. 40% on the taxable estate, or 36% if 10% or more of the net estate is left to charity.
- Nil-rate band. £325,000 per person.
- Residence nil-rate band. Up to £175,000 where the home passes to direct descendants, reduced by £1 for every £2 the estate exceeds £2m.
- Spouses and civil partners. Transfers between them are generally exempt, and unused bands can pass to the survivor.
- Bands are frozen. The nil-rate band, residence nil-rate band and £2m taper threshold are fixed until 5 April 2031.
- Business and agricultural property. 100% relief on the first £2.5m of qualifying property per person from 6 April 2026, then 50%.
- Gifts. Potentially exempt transfers are treated as outside the estate after seven years, on a simplified basis.
- Pensions. Flagged for the change from 6 April 2027, when unused pensions are due to come within the estate.
What the result means
The result is an estimate of the inheritance tax that could arise if the estate were assessed on the facts you entered. It is not a forecast of your final bill, because values, law and family circumstances will change. Use it to see the scale of the issue and which factors drive it.
If the result is zero, you may still need planning if your assets are growing or the bands are being reduced by gifts or taper. If it is large, the first question is how much time you have, because strategies like lifetime gifts depend on surviving seven years.
Limitations
The calculator is simplified. It does not model trusts in detail, non-UK assets for people with international histories, the full rules for business relief (including the trading and excepted-asset tests), the detail of previous gifts, or each exemption and taper. It is not tax advice.
What planning can do
Depending on your situation, planning might include lifetime gifts, trusts, a Family Investment Company, use of exemptions, business relief planning, and keeping your will up to date. Read more about Inheritance Tax Planning, Trusts and Estates, Wealth Planning and Family Investment Company.
Talk to us
Got your result? Book a free first call and we will go through it together, test the assumptions and explain your options. Or contact us with a question.
Questions, answered.
Straight answers to what clients ask us most. Your own situation may differ, so treat them as a starting point.
Q1What does the inheritance tax calculator do?
It estimates the inheritance tax that could be due on your estate if you died today, based on the assets, debts and gifts you enter, and on 2026/27 rules. It then shows how the available allowances apply and gives a first view of what planning might save.
Q2Which rates and allowances does the calculator use?
It uses the standard rate of 40%, the nil-rate band of £325,000, the residence nil-rate band of £175,000 for a home left to direct descendants, tapered by £1 for every £2 above £2m, and the reduced 36% rate where 10% or more of the net estate goes to charity.
Q3How does the calculator treat a married couple or civil partners?
Transfers between spouses and civil partners are generally exempt, and unused nil-rate band and residence nil-rate band can pass to the survivor. If you enter that you are married or in a civil partnership, the calculator can take this into account, which usually increases the allowances available on the second death.
Q4Does the calculator include business relief?
It can, if you tell it you own qualifying business property. From 6 April 2026, 100% relief applies to the first £2.5m of combined qualifying business and agricultural property per person, and 50% above. Whether your shares qualify depends on detailed facts, so treat this as an estimate.
Q5What about pensions?
Unused pension funds are currently outside the estate for most purposes but are due to come within the estate for inheritance tax from 6 April 2027. The calculator is designed to flag this change so you can see its potential effect. Pension treatment is one of the areas that most needs personal advice.
Q6How are lifetime gifts treated in the result?
Gifts to individuals are generally potentially exempt transfers, which fall out of the estate if you survive seven years. Gifts within seven years can use up the nil-rate band first. The calculator takes gifts you enter into account on a simplified basis, and does not apply every exemption or taper detail.
Q7Does the calculator account for trusts?
Only in a simplified way. Trusts have their own charges on entry, every ten years and on exit, and the position depends on the trust type and history. If you have a trust or are considering one, the calculator result is a starting point, and specific advice is essential.
Q8Why is my result different from what I expected?
Usual reasons are that the home does not pass to direct descendants so the residence nil-rate band does not apply, the estate exceeds £2m so the band tapers, or gifts made in the last seven years use up the nil-rate band. Check each answer, and if the result still seems wrong, talk to us.
Q9Do I need to enter exact values?
No. Reasonable estimates are fine for a first view. Property values and investment balances move, so round figures are normal. If the result is close to a threshold, a more precise valuation will matter, and an adviser can help you establish one.
Q10What does the planning saving shown mean?
It is an illustration of how much inheritance tax could potentially be reduced through the kinds of steps usually considered, such as gifts, trusts or a Family Investment Company. It is not a promise or a recommendation. Whether any step suits you depends on your control, income needs and family circumstances.
Q11Is the calculator suitable if I am not UK domiciled or live abroad?
It is built for individuals whose worldwide estate is within UK inheritance tax. Since 6 April 2025, that depends on being a long-term UK resident, meaning UK resident for at least 10 of the previous 20 tax years. If you live abroad or are new to the UK, use the Residency Checker too and speak to us.
Q12Is my information stored or shared?
We use what you enter to produce the result. If you give your email address, we show you the full breakdown on screen and may contact you under our privacy policy. We do not sell your data, and you can ask us to delete it. The policy explains who processes it.
Q13Can the calculator replace a financial or legal adviser?
No. It is an educational estimate and not advice. It cannot take account of your will, the exact terms of any trust, or the detailed rules for business property. A proper plan needs your full facts and, usually, your solicitor and financial adviser as well as a tax adviser.
Q14How often is the calculator updated?
We review it whenever the law changes, including changes to allowances, reliefs and the treatment of pensions. The tool page shows the date it was last reviewed. If you spot something out of date, please tell us so we can correct it quickly.
Q15What should I do after I get my result?
If it shows a bill, consider which assets are driving it and how soon you want to act, because many strategies need time. Then book a free call with us. We will check your result against your actual facts and explain your options in plain English.
