Inheritance Tax Calculator UK 2026/27

Estimate IHT on an estate using the £325,000 nil-rate band, the £175,000 residence nil-rate band and the 40% / 36% rates.

Last updated: May 2026 · 2026/27 rates

Estate

£

Total assets minus debts and reasonable funeral costs.

£

Added back to the estate for IHT. Taper relief may apply between 3 and 7 years — see notes below.

Reliefs

Main home to direct descendants?

Children, grandchildren, step-children. Unlocks £175,000 RNRB.

Spouse/civil partner's bands transferred?

If your spouse died and their NRB + RNRB are unused, you can claim both — effectively £1,000,000 combined.

10%+ of net estate to charity?

Reduces the IHT rate from 40% to 36% on the chargeable portion.

Inheritance Tax due

£40,000

at 40% on £100,000 taxable

Effective rate

6.7%

Estate + gifts
£600,000
Total tax-free allowance
£500,000
NRB £325,000 + RNRB £175,000
Net to heirs
£560,000

Calculation

Estate value£600,000.00
Chargeable transfer£600,000.00
- Nil-rate band (£325k)-£325,000.00
- Residence nil-rate band (after any taper)-£175,000.00
Taxable estate£100,000.00
× IHT rate40%
IHT due£40,000.00

Understanding Inheritance Tax

Every individual gets an inheritance tax-free allowance made up of two parts:

  • Nil-rate band (NRB): £325,000. Applies to any estate, used first. Frozen since 2009 and now until April 2030.
  • Residence nil-rate band (RNRB): £175,000. Only available if you pass your main home (or its sale proceeds) to direct descendants — children, grandchildren, step-children, fostered children. Frozen at this level since 2020/21.

If you're widowed and your spouse didn't use their NRB or RNRB, you inherit it. A married couple can therefore pass up to £1,000,000 tax-free with a home to descendants.

The Residence nil-rate band starts disappearing once the estate is worth more than £2,000,000, at a rate of £1 lost per £2 above the threshold:

  • Estate £2.0m: full £175,000 RNRB (or £350,000 as a couple)
  • Estate £2.35m: RNRB fully tapered for an individual
  • Estate £2.7m: RNRB fully tapered for a couple even with spouse transfer

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