Inheritance Tax Basic Checker
Estimate the inheritance tax liability on an estate using the 2026/27 nil-rate band (£325,000), residence nil-rate band (£175,000), transferable allowances, and the 40% IHT rate.
Calculator — accuracy depends on current rates
This calculator uses the rules and figures published on the dates shown. Rates, thresholds, and fees change — always verify the current figure on the official government website before paying or filing. The output is not legal advice.
Rates current as of: .
Privacy: runs entirely in your browser. Nothing you enter is sent to us or saved.
When to use this tool
Use when administering an estate to estimate whether inheritance tax is likely to apply and at what level. This checker uses the current HMRC nil-rate band thresholds and residence nil-rate band. It covers transferable nil-rate band from a late spouse or civil partner and gifts made in the 7 years before death. IHT returns must be submitted to HMRC before a grant of probate can be obtained if the estate is taxable.
Inheritance Tax Basic Checker
Include all assets: property, bank accounts, investments, personal possessions, business interests, jointly owned assets (at deceased's share). Deduct funeral expenses and debts.
Assets passing to a UK-domiciled spouse or civil partner are fully exempt from IHT (IHTA 1984 s.18). Selecting ‘Yes’ results in a £0 liability on this estate, but will allow the surviving spouse to inherit the unused NRB and RNRB.
If the late spouse did not use their NRB, it can be transferred to the surviving spouse's estate, potentially doubling the NRB to £650,000 (IHTA 1984 s.8A).
The Residence Nil-Rate Band (£175,000 in 2026/27) applies where a qualifying residential property is included in the estate and left to direct descendants (children, grandchildren). Enter 0 if no qualifying residence, or if it does not pass to direct descendants.
Potentially Exempt Transfers (PETs) that become chargeable because death occurred within 7 years. This reduces the NRB available to the estate. Annual exemptions (£3,000/year) and small gift exemptions have already been deducted. Enter 0 if none.
2026/27 IHT thresholds and legal basis
- Nil-Rate Band (NRB): £325,000 — frozen until 2030 (confirmed in Autumn Budget 2024). IHTA 1984 s.7.
- Transferable NRB (TNRB): up to £325,000 — IHTA 1984 s.8A; surviving spouse can claim unused NRB of late spouse.
- Residence Nil-Rate Band (RNRB): £175,000 — IHTA 1984 ss.8C–8M; applies where qualifying residence passes to direct descendants.
- Transferable RNRB: up to £175,000 — IHTA 1984 s.8G; surviving spouse can claim unused RNRB of late spouse.
- RNRB taper: reduced by £1 for every £2 the net estate exceeds £2,000,000.
- IHT rate: 40% on the chargeable estate above the threshold. Reduced to 36% where 10%+ of net estate left to charity (Finance Act 2012, Sch 33A).
- Seven-year rule: gifts made within 7 years of death are potentially chargeable; taper relief (20%–80% reduction) applies to the IHT on gifts made 3–7 years before death (IHTA 1984 s.7(4)).