UK Inheritance Tax Calculator

Enter Calculation

Total estate value (£)

Nil-rate band (£)

Residence nil-rate band (£)

IHT rate (%)

Results

Estimated Inheritance Tax

£0

due on the estate

Total tax-free allowance	£500,000
Taxable estate	£0
Net estate after IHT	£500,000

What is the UK Inheritance Tax Calculator?

This calculator applies to the United Kingdom. Inheritance Tax (IHT) is a tax on the estate (property, money and possessions) of someone who has died. This tool estimates the IHT due using the standard 40% rate and the tax-free allowances in place for the 2024/25 tax year. It is a guide only and does not account for every relief, exemption or trust arrangement — always seek professional advice for estate planning.

How to use it

Enter the total value of the estate, the nil-rate band (£325,000 by default), the residence nil-rate band (up to £175,000 if a home is left to direct descendants), and the IHT rate (40% standard, or 36% where 10%+ of the net estate is left to charity). The calculator subtracts the combined allowances, applies the rate to the remainder and shows the tax due and the net estate.

The formula explained

The taxable amount is the estate value minus the combined nil-rate bands, floored at zero so a small estate is never negative: taxable = max(0, estate − NRB − RNRB). The tax is then IHT = taxable × rate%.

$$\text{IHT} = \max\!\left(0,\; \text{Estate} - \text{NRB} - \text{RNRB}\right) \times \frac{\text{Rate (\%)}}{100}$$

Married couples and civil partners can transfer any unused allowance, effectively doubling the bands — enter the combined figure if so.

How the estate is divided into tax-free bands and the portion taxed at 40%.

Worked example

An estate of £800,000 with a £325,000 nil-rate band and £175,000 residence nil-rate band has a £500,000 combined allowance. The taxable estate is \(£800{,}000 - £500{,}000 = £300{,}000\). At 40%, the IHT is

$$£300{,}000 \times 0.40 = £120{,}000$$

leaving a net estate of £680,000.

Worked example flow: subtract the allowances, then apply the 40% rate.

FAQ

Is there any tax below the allowance? No — estates worth less than the combined nil-rate bands pay no IHT, and this calculator returns £0.

When does the 36% rate apply? If you leave at least 10% of the net estate to charity, the rate on the rest can fall to 36%; enter 36 in the rate field.

Can the residence band be reduced? Yes — the RNRB tapers away for estates over £2 million. Adjust the band you enter to reflect this if applicable.