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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

This calculator does not model lifetime gifts, trusts, business property relief, agricultural relief or the spouse exemption on assets passing directly to a surviving spouse. It assumes the full unused allowance is transferred.

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.