Estimate Your Inheritance Tax Liability
Use this free tool to calculate how much Inheritance Tax (IHT) may be due on your estate. It considers the standard and residence nil-rate bands, gifting, and charitable donations — helping you plan tax-efficiently for the future.
Inheritance Tax is no longer a concern only for the ultra-wealthy. With the Nil-Rate Band frozen at £325,000 until 2030 and rising property values across the UK, more estates are being pulled into the 40% tax bracket through “fiscal drag.”
Furthermore, the 2026 planning landscape is dominated by the upcoming April 2027 legislative shift, which will bring most unused pension pots into the value of the taxable estate for the first time. Understanding your current exposure is the first step toward effective legacy planning and protecting your beneficiaries from an unexpected tax bill.
Why Use This Estimator?
- Threshold Accuracy: Account for the standard Nil-Rate Band (£325,000) and the Residence Nil-Rate Band (£175,000) if you are passing a family home to direct descendants.
- Spousal Transfers: Model the “Double Allowance” (up to £1 million) available to married couples and civil partners.
- The 7-Year Rule: Factor in “Potentially Exempt Transfers” (PETs) to see how recent gifts still impact your current tax liability.
- Charitable Incentives: See how leaving 10% of your estate to charity can reduce your overall IHT rate from 40% to 36%.
How to Estimate Your Liability:
- Asset Valuation: Input the total value of your property, savings, and investments. (Note: From April 2027, you should also include your pension value for long-term planning).
- Define Beneficiaries: Indicate if you are leaving your home to children or grandchildren to trigger the additional residence allowance.
- Account for Gifts: Subtract any large gifts made in the last 7 years, keeping in mind the “taper relief” schedule.
Take control of your estate planning. Use the estimator below to identify your current IHT exposure and explore ways to mitigate future tax leakage.
2026 IHT Quick Reference Table
| Allowance / Rate | Current Limit (2026/27) | Status |
| Nil-Rate Band (NRB) | £325,000 | Frozen until 2030 |
| Residence Nil-Rate Band (RNRB) | £175,000 | Frozen until 2030 |
| Standard IHT Rate | 40% | Applies above thresholds |
| Reduced IHT Rate | 36% | If 10% left to charity |
| Annual Gift Allowance | £3,000 | “Use it or lose it” |