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Tax calculator

Inheritance Tax Calculator

Last updated: 10 July 2026Information correct for tax year: 2026/27

This calculator models a basic estate, debts, qualifying home and transferable percentage. Gifts, trusts, exemptions, business relief, charity rate, domicile and detailed taper rules may require specialist advice.

By FinanceHub UK Editorial TeamReviewed by role: Chartered tax adviser or trusts-and-estates solicitorCalculations run in your browser

Quick answer

The simplified estimate deducts debts, nil-rate band and any available residence nil-rate band, then applies 40% to the remainder.

Calculator

Enter your numbers

Enter property, money and other assets before debts.
Enter deductible liabilities for the scenario.
Enter the qualifying residential value used for the residence nil-rate band.
Enter 0 to 100 as a simplified transferable percentage.

How to use this calculator

  1. Enter the figures that match your current scenario.
  2. Check the effective date, assumptions and any jurisdiction or plan selection.
  3. Review the breakdown, test a second scenario and verify the result before acting.

Explanation

What it is

The simplified estimate deducts debts, nil-rate band and any available residence nil-rate band, then applies 40% to the remainder.

How it works

The helper applies a £325,000 nil-rate band and up to £175,000 residence nil-rate band, scales both by the selected transferable percentage and tapers the residence band for net estates above £2 million.

When to use it

Use this tool to explore a planning scenario before checking current official rules, product documents or professional guidance.

Limitations

  • The result is an estimate based only on the inputs shown.
  • Rates, thresholds and product terms can change after the effective date.
  • The calculator does not replace an official assessment, provider quote or personalised advice.

Key terms

Estimate
A planning result produced from the stated inputs and assumptions, not a guaranteed outcome.
Effective date
The date or tax year for which a changing rule, threshold or rate has been checked.
Authoritative source
An official or regulator-backed source used to support a rule, rate or calculation method.

Formula

How we calculate this

The helper applies a £325,000 nil-rate band and up to £175,000 residence nil-rate band, scales both by the selected transferable percentage and tapers the residence band for net estates above £2 million.

IHT estimate = 40% × net estate above available nil-rate bands

Statutory or methodological reference:GOV.UK official guidance — Inheritance Tax.

Formula trace: Estate value less debts/exemptions, nil-rate bands, residence band and reliefs; gift chronology and taper presented separately; clearly label estimate limitations.

Worked example

Enter realistic figures into the inheritance tax calculator and compare the result with the breakdown. Change one assumption at a time so you can see which factor has the greatest effect. Check the governing rule at GOV.UK official guidance — Inheritance Tax.

FAQ

What does the inheritance tax calculator calculate?

The simplified estimate deducts debts, nil-rate band and any available residence nil-rate band, then applies 40% to the remainder.

Which assumptions have the biggest effect?

The most important assumptions are the amounts, time period, applicable rate or threshold, and any jurisdiction or plan choice shown in the form.

How accurate is this estimate?

It is designed for planning and testing scenarios. Accuracy depends on the inputs and whether your circumstances fit the simplified method described on the page.

Can I use the result as a final decision?

No. Verify changing rules and product terms, and seek suitable professional or official guidance when the decision is material or complex.

When should I recalculate?

Recalculate after a change in income, balance, rate, term, household circumstances, tax year or official policy.

Common mistakes

  • Using a headline rate without checking whether it applies to the full amount.
  • Mixing monthly and annual figures.
  • Treating an educational estimate as an official assessment or guaranteed quote.

Tips

  • Test a cautious scenario as well as an optimistic one.
  • Keep a note of the assumptions and effective date.
  • Compare the result with official guidance or provider documents before acting.

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Sources and editorial review

Author and review

Author: FinanceHub UK Editorial Team — Editorial. Editorial policy.

Reviewed by role: Chartered tax adviser or trusts-and-estates solicitor. Named qualified reviewer sign-off is pending before production.

Review record date: 2026-07-10. Next review due: 2027-03-01.