Inheritance Tax calculator

Estate planning · 2025/26 rates

Inheritance Tax calculator

Estimate the Inheritance Tax due on a UK estate, using the nil-rate band, the residence nil-rate band, and any exemptions — and see exactly how the estate is divided.

The estate

GBP
£800,000

Everything owned at death — property, savings, investments, possessions.

Outstanding mortgage, loans and funeral costs, deducted from the estate.

Gifts to a UK-domiciled spouse or civil partner are exempt from Inheritance Tax.

Exempt — and leaving 10%+ of the taxable estate cuts the rate to 36%.

Inheritance Tax due

£120,000

Charged at 40% on the estate above the available tax-free bands.

Tax-free bands

£500,000

Taxable estate

£300,000

Effective rate

15.0%

To beneficiaries £680,000 Inheritance Tax £120,000 Exempt gifts £0

How the estate is taxed

Statement
Assumptions. An estimate for the 2025/26 tax year using a £325,000 nil-rate band and a £175,000 residence nil-rate band, both frozen to April 2030. The residence band tapers by £1 for every £2 the estate exceeds £2,000,000, and is capped at the value of the home left to direct descendants. Spouse/civil-partner and charity gifts are treated as fully exempt, and transferable bands assume the late spouse's estate was UK-domiciled. Excludes business and agricultural relief, trusts, gifts made in the seven years before death, and non-domicile rules. This is not tax advice — take professional advice before acting.