UK Inheritance Tax Calculator
Estimate the inheritance tax on your estate for the 2025/26 or 2024/25 tax year. Includes the nil-rate band, residence nil-rate band (RNRB) with taper, spouse exemption, transferable allowances, and the reduced charity rate.
Children, grandchildren, etc. — enables the Residence Nil-Rate Band (RNRB)
Inheritance Tax
£0.00
Rate: 40.00%
Total Allowances
£500,000
NRB + RNRB (after taper)
Effective Rate
0.00%
IHT as % of estate
| Item | Amount |
|---|---|
| Total Estate Value | £500,000 |
| Net Estate | £500,000 |
| Nil-Rate Band (NRB) | −£325,000 |
| Residence Nil-Rate Band (RNRB) | −£175,000 |
| Taxable Estate | £0 |
| Inheritance Tax @ 40.00% | £0.00 |
Frequently asked questions
What is the inheritance tax threshold in the UK?
The standard IHT nil-rate band (NRB) is £325,000. Estates below this threshold pay no inheritance tax. If you leave your main residence to direct descendants (children, grandchildren), you also get the Residence Nil-Rate Band (RNRB) of £175,000, giving a total threshold of up to £500,000. Married couples and civil partners can transfer unused allowances, potentially giving a combined threshold of up to £1,000,000.
What is the Residence Nil-Rate Band (RNRB)?
The RNRB is an additional £175,000 allowance available when your main residence is left to direct descendants. However, it tapers away for estates over £2,000,000 — reducing by £1 for every £2 over £2M. It is fully removed at an estate value of £2,350,000. The RNRB is also transferable between spouses.
How does the charity rate reduction work?
If you leave at least 10% of the "baseline amount" (broadly, the net estate minus the nil-rate band) to charity, the IHT rate is reduced from 40% to 36% on the taxable estate. This can sometimes mean that leaving more to charity actually reduces the overall IHT bill and leaves more for other beneficiaries.
Sources
Related Calculators
Learn More
Pension IHT from 6 April 2027 — What to Do With Your 12-Month Runway
From 6 April 2027, unused DC pensions count toward your estate for Inheritance Tax. Four persona-based strategies for the 12-month planning window: drawdown, gifting, annuitisation, and estate structuring.
BPR & APR £2.5M Cap from 6 April 2026 — What Business and Farm Owners Need to Know
Finance Act 2026 caps combined Business Property Relief and Agricultural Property Relief at £2.5M per person (100% relief), with 50% relief above producing an effective 20% IHT rate. AIM shares are capped at 50% relief. What changes, who is affected, and what to do before April 2026.
UK Inheritance Tax 2025-26 & 2026-27 — £325k NRB + £175k RNRB (HMRC)
HMRC Inheritance Tax for 2025-26 and 2026-27: £325,000 nil-rate band, £175,000 residence nil-rate band, 7-year gift taper relief, 36% charity rate, and spouse transfers.