Calculate Inheritance Tax UK

Free Inheritance Tax (IHT) Calculator UK

Find out how much inheritance tax you could owe - instantly. Our free IHT calculator estimates your potential liability based on current UK thresholds, giving you a clear view of how much of your estate could be passed on tax-free.

BOOK YOUR ESTATE REVIEW IHT PLANNING ADVICE

Estimate your potential Inheritance Tax liability in just a few minutes. Simply enter your details below to see how allowances and exemptions could affect what you leave behind.

Keep in mind that specific circumstances that are outside of the scope of this calculator may result in different levels of inheritance tax being due. Also bear in mind that legislation may change in the future.

What is your marital status? Do you have a main residence? How much is your main residence worth? Other Properties Value Savings Value Investments Value (excluding pensions) Pension(s) Value Total Value of Other Assets Life Assurance Value (not held in trust) Loans and Debts Do you plan to leave your house to your direct descendants (children or grandchildren) when you die? Gifts made within the last seven years

How Our Inheritance Tax Calculator Works

You’ll receive an instant estimate of your total estate value, potential taxable amount, and approximate IHT due at the standard 40% rate. Our IHT calculator estimates your inheritance tax liability using current HMRC thresholds, including:

£325,000 Nil-Rate Band (NRB) per person

Up to £175,000 Residence Nil-Rate Band (RNRB) for property left to direct descendants

Spousal Transfer: Any unused allowances can be transferred to a spouse or civil partner, allowing a couple to potentially pass on up to £1 million tax-free

Calculate Your Potential Inheritance Tax Liability Here

IHT CALCULATOR

Ways to Reduce or Manage Your Inheritance Tax Liability

Trust Planning: protecting assets and controlling how they’re passed on

Gifting Advice: use your annual exemptions to pass on wealth tax-free

Life Insurance for IHT: cover potential tax bills through a life insurance policy written in trust

Pensions & Retirement Planning: optimise how your pension fits into your legacy

Wills & Estate Planning: ensure your wishes are structured tax-efficiently

Our Inheritance Tax Pages:

Book Your Estate Review Here Inheritance Tax Exemptions & Reliefs Inheritance Tax Planning Advice How to Avoid Inheritance Tax Gifting in Inheritance Tax (IHT) Planning Inheritance Tax on Pensions (From April 2027)Nil-Rate Band (NRB) & Residence Nil-Rate Band (RNRB)

Frequently Asked Questions

How is Inheritance Tax Calculated in the UK?

Inheritance tax is charged at 40% on the value of your estate above the tax-free allowances. The main thresholds are £325,000 per person and up to £175,000 for your home if left to children or grandchildren.

How can I reduce my inheritance tax bill?

You can reduce potential liability by using annual gift allowances, trusts, life insurance, and effective pension or estate planning. Professional advice ensures these are applied correctly.

IHT Thresholds and Allowances (2025 – 2027)

Inheritance tax thresholds have remained unchanged for over a decade, and current government plans mean they’ll stay frozen until at least April 2028. This freeze, combined with rising property and investment values, means more families are becoming liable for IHT each year.

Key Changes and Exceptions Coming Between 2025 – 2027

Pension Funds to be Included in Estates (April 2027): From 6 April 2027, most unused pension pots and pension death benefits will be counted as part of your estate for inheritance tax purposes. This means funds that were previously exempt could now attract IHT at 40% above the available thresholds.

Agricultural & Business Property Relief Reforms (April 2026): From April 2026, Agricultural Property Relief (APR) and Business Property Relief (BPR) will be adjusted - with proposals to limit full relief to £1 million of qualifying assets, and reduce relief above that to 50%. This could affect business owners and families holding farmland or trading company shares.

What This Means for You and Your Estate

If your estate includes property, pensions, or business assets, these changes could significantly impact your future IHT position. Using the calculator above gives a useful estimate under current rules - but the actual figure may rise once the 2027 reforms take effect.

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