Our Inheritance Tax Calculator can help you work out your potential inheritance tax liability
Calculating inheritance tax
Inheritance tax isn’t only an issue for wealthy families. While the Nil Rate Band is frozen until April 2031 and property values increase, Inheritance tax receipts have been rising steadily and affecting more families.
Planning ahead and calculating your Inheritance Tax could make a big difference to your future IHT bill. With Financial Advice, you could reduce your inheritance tax liability and take control of what happens to your legacy.
Use the fields below to check if your estate exceeds the Nil Rate band, and find out you’re likely to pay inheritance tax. This tool will create an estimate including several scenarios, such as whether you’re married or have descendants.
Our Inheritance Tax Calculator
Your details:
Year Of Death:
Marital Status:
Pass To Descendants:
Estate Value:
Taxable Estate:
Taxable Allowance:
Inheritance Tax Due:
Marital Status
Passes Residence To Direct Descendants
Hypothetical Year Of Death
The outcome of the calculator is not guaranteed and the outcome will depend on the quality/ accuracy of the information entered, as well as current legislation which may be subject to change. This is for illustrative purposes only and does not constitute advice.
This calculator is not an exact representation of how much Inheritance Tax might be due on your estate upon death. The result is based on the figures you put into the calculator and current tax rules. It does not include any nuance of Inheritance Tax rules that might affect your personal circumstances. It’s important to remember that tax rules can change at any time.
Get in touch with a local Financial Adviser
How much Inheritance Tax will your children pay?
What is the average Inheritance Tax bill?
£212k
The average IHT bill
13%
The average effective IHT rate
Source: gov.uk
How does our Inheritance Tax calculator work?
Our Inheritance Tax calculator can provide an estimate of how much of your estate will be taxable, and how much IHT will be due. To use this IHT calculator, you’ll need to know the current value of your assets and debts (such as property, investments and savings).
Our calculator takes into account different rules and reliefs available, such as:
Nil Rate Band
Assets to the value of £325,000 will be ignored for IHT purposes. After reliefs and exemptions, the remainder of your estate is then generally taxed 40%.
Transferrable Nil Rate Band
A surviving spouse (or civil partner) will need to apply to HMRC to inherit any unused Nil Rate Band of the partnership. This can mean that the survivor’s estate will benefit from a ‘doubled’ Nil Rate Band of £650,000.
Main Residence Nil Rate Band
If you ultimately leave your main residence to a direct descendant (e.g. child) then up to an additional £175,000 (frozen until April 2030) can be added to the standard Nil Rate Band.
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Inheritance Tax FAQs
Can I reduce Inheritance Tax through gifting?
Can I reduce Inheritance Tax through gifting?
Yes, thanks to Gifting Allowances commonly known as the ‘Seven Year Rule’. These gifting rules usually allow gifts made more than seven years before death to be considered outside your estate for Inheritance Tax purposes, and annual exemptions (such as the £3,000 gift allowance) can be used every year. A Financial Planner can help structure your gifting plans alongside trusts and other estate planning tools.
Who pays Inheritance Tax to HMRC?
Who pays Inheritance Tax to HMRC?
Your Executor will be responsible for sorting out your assets and paying your IHT bill – before distributing your assets to your loved ones and beneficiaries. It can be a lengthy process, which is why we have a guide for Executors on who to inform and how to get through Probate, and encourage you to invite your Executor to meet your Financial Adviser.
Most UK Financial Advisers charge either a percentage of the assets they manage (typically 0.5%–1% a year), a fixed fee, or an hourly rate, and many also charge an initial fee for the first financial plan. Wren Sterling publishes its fee structure and offers an initial consultation to discuss costs before any commitment.
What is the UK Inheritance Tax threshold in 2026?
What is the UK Inheritance Tax threshold in 2026?
Inheritance tax isn’t only an issue for wealthy families. While the Nil Rate Band is frozen until April 2031 and property values increase, Inheritance tax receipts have been rising steadily and affecting more families. The standard Nil Rate Band is £325,000 per person, with an additional £175,000 Residential Nil Rate Band available when your home is passed to your direct descendants. This means couples can pass on up to £1 million before Inheritance Tax applies. However, thresholds and reliefs can change, so it’s worth speaking to a Financial Adviser.
More detail is available on our Inheritance Tax page.
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