UK Inheritance Tax (IHT) Calculator 2025

Estimate the Inheritance Tax (IHT) due on an estate for the 2025–26 tax year. Includes the nil-rate band, residence allowance, spouse exemptions and lifetime gifts.

UK Inheritance Tax (IHT) Calculator

Estimate inheritance tax for the 2025/26 tax year, including Nil-Rate Band (NRB), Residence NRB (RNRB), spouse transfers, gifts in the last 7 years, and charity rate reduction.

Estate & Deductions

Allowances & Transfers

Gifts in the Last 7 Years

Indicative results only — not a substitute for professional advice.

Ready
Taxable Estate (after allowances) £0.00
IHT on Estate £0.00
IHT on Gifts £0.00
Total IHT Payable £0.00
Breakdown Amount
No data yet

 

Inheritance Tax Rates & Allowances 2025–26

Nil-Rate Band (Tax-Free Allowance)
Standard Nil-Rate Band £325,000
Residence Nil-Rate Band (Property Inheritance)
Allowance Details
£175,000 Available if passing a main residence to direct descendants.
Up to £500,000 total When combined with standard nil-rate band.
IHT Tax Rate
IHT Rate on taxable estate 40%
Reduced rate (if donating 10% to charity) 36%
Spouse & Civil Partner Exemptions

If you leave your estate to your spouse/civil partner:

Spouse exemption No Inheritance Tax due
Unused allowances Can transfer unused allowances to surviving spouse

IHT applies only to estates in England, Wales and Northern Ireland. Scotland has a similar system but separate probate rules.

How Inheritance Tax Works

Inheritance Tax is paid on the value of an estate above the available tax-free allowances. Certain transfers—like gifts to spouses or charities—are exempt. Other gifts may become taxable if made in the 7 years before death.

  • Nil-rate band: First £325,000 is tax-free.
  • Residence allowance: Additional £175,000 for passing a main home to children or grandchildren.
  • Charity rule: Leave 10% to charity → tax rate drops from 40% to 36%.
  • Gifts: Gifts within 7 years may incur tapered tax.
  • Spouse exemption: No IHT when everything passes to spouse/civil partner.

This calculator accounts for allowances and exemptions to estimate the tax due.

Inheritance Tax Examples

Total Estate: £300,000
  • Below nil-rate band
  • No IHT due
  • Total IHT: £0
Total Estate: £600,000
  • Taxable estate: £600,000 – £325,000 = £275,000
  • IHT @ 40%: £110,000
  • Total IHT: £110,000
Estate: £800,000 (Home left to children)
  • Allowances: £325,000 + £175,000 = £500,000
  • Taxable: £300,000
  • IHT: £120,000
  • Total IHT: £120,000

Frequently Asked Questions

You may, but the residence nil-rate band can reduce or eliminate this if you pass the property to children or grandchildren.

No. Transfers between spouses and civil partners are exempt, and unused allowances can be passed on.

This UK Inheritance Tax Calculator uses HMRC 2025–26 allowances including the nil-rate band, residence allowance and charity IHT reduction rules.