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Inheritance Tax Calculator

Estimate the Inheritance Tax on your estate for 2026/27 — including the nil-rate band, residence nil-rate band, spouse transfer and the reduced 36% charity rate.

Tool
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Estate details

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Total value of all assets (property, savings, investments, possessions) minus debts.

£

Value of the main home included in the estate.

Children, grandchildren, step-children. Required for the RNRB.

Doubles both NRB and RNRB if the first spouse's allowance was unused.

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10%+ to charity reduces the IHT rate from 40% to 36%.

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Inheritance Tax Effective rate —

£—
Nil-rate band (NRB)£—
Residence NRB£—
Total tax-free allowance£—
Taxable estate£—
Rate applied—
2026/27: NRB £325k · RNRB £175k · 40% standard (36% if 10%+ to charity) · RNRB tapers above £2m

Inheritance Tax thresholds and rates apply to the 2026/27 tax year. Sources: GOV.UK — Inheritance Tax · GOV.UK — IHT thresholds. Rules can change — check the latest official guidance.

How it works

Enter your estate value, property value and circumstances. The calculator works out your available nil-rate band (NRB), residence nil-rate band (RNRB), the taxable estate and the IHT due. If you are married or in a civil partnership and your partner's allowance was unused, both allowances double. The RNRB only applies when a home is left to direct descendants and is tapered for estates above £2 million.

Example calculation

For a £500,000 estate with a £300,000 home left to children, single person (2026/27):

  • NRB: £325,000
  • RNRB (home to descendants): £175,000
  • Total allowance: £500,000
  • Taxable estate: £500,000 − £500,000 = £0
  • IHT due: £0

For a married couple with the same estate, the allowance doubles to £1 million, so an estate up to £1 million (with home to descendants) pays no IHT.

Methodology & formula

Taxable estate = max(0, estate − NRB − RNRB). IHT = taxable estate × rate (40% standard, 36% if ≥10% to charity).

  • NRB: £325,000 per person, transferable to spouse (frozen until April 2031) GOV.UK · 2026/27
  • RNRB: £175,000 when home left to direct descendants, transferable to spouse GOV.UK · 2026/27
  • RNRB taper: reduced by £1 for every £2 of estate above £2m GOV.UK · 2026/27
  • Charity rate: 36% (down from 40%) if ≥10% of net estate to charity GOV.UK · 2026/27

Assumptions: this calculator estimates IHT based on the estate value and options you enter. It does not model lifetime gifts, trusts, business property relief, agricultural relief, deed of variation or the spouse exemption on assets passing directly to a surviving spouse. It assumes the full unused NRB and RNRB are transferred when married. This is an estimate, not a substitute for professional tax advice.

Frequently asked questions

How is Inheritance Tax calculated?
IHT is charged at 40% on the value of your estate above your available nil-rate band (NRB). The standard NRB is £325,000. If you leave your main home to direct descendants, you also get the Residence Nil Rate Band (RNRB) of £175,000. Both are transferable between spouses, giving a combined allowance of up to £1 million for a couple.
What is the Residence Nil Rate Band (RNRB)?
The RNRB is an additional £175,000 allowance (2026/27) that applies when you leave your main residence to direct descendants (children, grandchildren, step-children). It is transferable between spouses. The RNRB is reduced by £1 for every £2 of estate value above £2 million, reaching zero at £2.35 million for a single person.
Can I transfer my nil-rate band to my spouse?
Yes. Any unused portion of both the NRB and RNRB can be transferred to a surviving spouse or civil partner. This means a couple can have a combined tax-free allowance of up to £1 million (£650,000 NRB + £350,000 RNRB) when the second person dies, provided the home is left to direct descendants.
What is the 36% charity rate?
If you leave at least 10% of your net estate (after allowances) to charity, the IHT rate on the rest of your taxable estate is reduced from 40% to 36%. This can reduce the overall IHT bill while supporting a cause.
Do I pay IHT on assets left to my spouse?
No. Assets left to a spouse or civil partner are generally exempt from IHT, regardless of value. This is called the spouse exemption. The unused nil-rate band is then transferred, increasing the survivor's allowance.
Are gifts made before death subject to IHT?
Gifts made more than 7 years before death are generally exempt. Gifts made within 7 years may be taxable on a sliding scale (taper relief), though the taper only applies to gifts above the nil-rate band. This calculator does not model lifetime gifts.

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Sources

Casvia provides educational calculators and general information. It does not provide personal financial, tax or investment advice.