Estimate Inheritance Tax liability on an estate with our UK IHT calculator.
Total the estate assets
Add up everything owned at death: property at market value, investments, ISAs, savings, vehicles, possessions, business interests, life insurance not written in trust. Use probate-style market values, not insured replacement cost.
Deduct liabilities
Subtract mortgages, loans, credit cards, unpaid bills and reasonable funeral expenses. Funeral costs paid from the estate are deductible; lavish wakes generally are not.
Apply nil-rate bands
Tick whether the main residence passes to direct descendants (unlocks the £175,000 RNRB), and whether unused allowances transfer from a deceased spouse (doubles to £650,000 NRB + £350,000 RNRB).
List recent gifts
Add gifts made in the 7 years before death over the £3,000 annual exemption. Older gifts may benefit from taper relief reducing the effective rate from 40% to 8%.
Check the result and plan
See estate value, available bands, taxable estate and IHT bill. Consider charitable giving (10% of net estate qualifies for 36% rate), lifetime gifts, life insurance in trust, or specialist Business Relief investments.
Severing a joint tenancy converts automatic survivorship into a specific, separately owned share that can pass via your will — a common Inheritance Tax planning step. How it works in 2026/27.
UK intestacy rules 2026: who inherits when there is no will — spouse/civil partner first £322k plus half the remainder, children, cohabiting partners get nothing, unmarried parents, and how to avoid intestacy.
Gifts you make are Potentially Exempt Transfers — IHT-free if you survive 7 years. Taper relief, the £325k nil-rate band trap, and how PETs interact with regular gifts out of income. Worked examples.
Disclaimer: All results are estimates for guidance only and do not constitute financial, tax or legal advice. Always consult a qualified professional.
