Estimate your potential UK Inheritance Tax (IHT) liability for the 2025/26 tax year. Enter your estate value, debts, charitable donations, and relevant details. This calculator provides an estimate based on current tax rules and does not account for lifetime gifts, trusts, or other reliefs. For precise calculations, verify with the official GOV.UK IHT tools.
Inheritance Tax (IHT) can be a complex subject in the UK, especially when planning your estate or receiving a significant inheritance. With various rules, exemptions, and thresholds to consider, it’s easy to feel overwhelmed. That’s why we’ve developed a simple yet powerful Inheritance Tax Calculator to help you get a quick and accurate estimate of how much tax might be due—based on current UK regulations.
In the UK, Inheritance Tax is usually applied to estates valued above £325,000, known as the nil-rate band. If your estate exceeds this amount, the excess may be taxed at 40%. However, several allowances and reliefs can significantly reduce or eliminate this tax. For example, if you pass your main residence to a direct descendant, you may benefit from an additional residence nil-rate band of up to £175,000.
Our calculator takes into account key details such as the total value of your estate, outstanding debts, lifetime gifts, and eligible reliefs. By inputting this information, you can instantly see a breakdown of your potential Inheritance Tax bill—giving you clarity and control over your financial planning.
Whether you’re preparing your own estate or managing the estate of a loved one, understanding your IHT liability can help you make smarter decisions. You’ll be able to explore tax-saving options like making gifts during your lifetime, donating to charity, or using trusts.
With user-friendly functionality and up-to-date UK tax rules, our Inheritance Tax Calculator is an essential tool for financial planning. It’s fast, free, and doesn’t require any personal data. Take the guesswork out of estate planning and start making informed decisions today.
Inheritance Tax is a tax on the estate (property, money, and possessions) of someone who has passed away. In the UK, IHT typically applies if the value of the estate exceeds £325,000, known as the nil-rate band. Anything above that threshold may be taxed at 40%, unless exemptions or reliefs apply.
Nil-rate band: £325,000
Residence nil-rate band: Up to £175,000
Tax rate on estate over threshold: 40%
Tax rate on gifts to charity: 36% (if 10% or more of the estate is donated)
Usually, the executor of the will or the administrator of the estate pays the tax to HMRC. The tax is generally paid from the estate before it is distributed to beneficiaries.
However, if you’ve received a gift and the person dies within 7 years, you may be liable for tax depending on the gift’s value (known as the 7-year rule).
Gifts to your spouse or civil partner (UK-based) – tax-free
Gifts to charities – tax-free
Annual gift allowance – £3,000 per year
Small gifts under £250
Wedding gifts within limits