Inheritance Tax Calculator UK 2026
Estimate IHT with the £325,000 nil-rate band, up to £175,000 residence nil-rate band when a home goes to direct descendants, transferable spouse allowances, and the 36% charity rate.
By Sammy S. · Founder · AuthorUpdated for 2026
Calculate UK Inheritance Tax
Enter the net estate, optional home left to direct descendants, and any transferred allowances — results update instantly.
Your inputs
Estate, home to descendants, transfers
After debts, before spouse/charity exemptions (needed for £2m RNRB taper). NRB £325,000.
Caps RNRB (max £175,000 before transfer/taper). Use 0 if none.
Exempt
Exempt; ≥10% may unlock 36%
Estimated IHT due
40% rate£70,000
Effective 14% of £500,000
- No residence nil-rate band — enter a home (or share) left to direct descendants to claim RNRB.
NRB, RNRB, spouse transfers, and charity rate.
UK Inheritance Tax is estimated on the net estate after debts using HMRC’s nil-rate band (NRB) and, when a home goes to direct descendants, the residence nil-rate band (RNRB). On the GOV.UK rates table, NRB £325,000 runs through 5 April 2031 and RNRB £175,000 through 5 April 2030. Figures come from the same engine as the live calculator and match published gov.uk / HMRC worked examples.
Worked example — NRB only
Estate £500,000 · no RNRB
| Net estate | £500,000 |
| NRB available | £325,000 |
| RNRB applied | £0 |
| Taxable | £175,000 |
| Rate | 40% |
| IHT due | £70,000 |
£500,000 → IHT £70,000 at 40%
Same estate with RNRB
£500,000 → IHT £0 at 40%
Formulas
- Chargeable estate: Chargeable = Net estate − spouse/civil partner exempt − charity gifts
- Available NRB: NRB = £325,000 × (1 + transferred unused % from late spouse)
- Available RNRB: RNRB = min(home to direct descendants, max RNRB after taper) · max before transfer = £175,000
- RNRB taper: If estate > £2,000,000: reduce RNRB by £1 for every £2 over the threshold
- Tax due: Taxable = max(0, Chargeable − NRB − RNRB) · Tax = Taxable × 40% (or 36% if charity ≥ 10% of net estate)
Calculation steps
- Start from the net estateEstate after debts and liabilities
Enter the net value of the estate. Spouse/civil partner gifts and charity legacies are treated as exempt in this model.
- Apply residence nil-rate band (if qualifying)Up to £175,000 when a home/share goes to direct descendants
RNRB is limited to the lower of the home left to direct descendants and the available RNRB after any £2m taper and spouse transfer.
- Apply the nil-rate band£325,000 plus any unused transferred NRB
Any unused NRB from a late spouse or civil partner can increase the allowance (up to another £325,000 when 100% unused).
- Tax the remainder40% standard · 36% if charity gift ≥ 10% of net estate
Only the slice above the combined allowances is taxed. Charity gifts are exempt and may also unlock the reduced rate.
Official sources
- How Inheritance Tax works (gov.uk)
- Inheritance Tax thresholds and interest rates (gov.uk)
- Inheritance Tax: thresholds freeze to 2030–31 (HMRC)
- Residence nil-rate band guidance (HMRC)
- Check if an estate qualifies for RNRB (gov.uk)
- HMRC IHT manual — RNRB examples (IHTM46070)
- HMRC IHT manual — RNRB taper + transfer (IHTM46044)
Key takeaways — UK Inheritance Tax
- UK nil-rate band is £325,000 (frozen until April 2031). HMRC example: £500,000 estate → £70,000 IHT at 40%.
- Leaving a home to children/grandchildren can add up to £175,000 RNRB — combined threshold £500,000.
- Official example: £490,000 estate with £300,000 home to children → £0 IHT.
- HMRC Beatrix example: chargeable estate £500,000 with a £100,000 flat to a child → taxable £75,000 → IHT £30,000 at 40%.
- RNRB tapers above £2,000,000. Leaving ≥10% of the net estate to charity may reduce the rate to 36% (simplified check — see methodology).
NRB, RNRB, and the charity rate
Same engine as the live calculator. HMRC overview: £500,000 → IHT £70,000 at 40%
Tax = max(0, Estate − £325,000) × 40%
£500,000 → £70,000 (HMRC overview example)
Tax-free up to £500,000 when a home goes to direct descendants
£500,000 with home to children → £0
36% if ≥10% of the net estate is left to charity
Charity gifts are also exempt from the chargeable estate in this model
What is Inheritance Tax in the UK?
Inheritance Tax (IHT) is a tax on the estate of someone who has died — property, money, and possessions. It is usually paid by the executor from estate funds, not by beneficiaries on what they inherit.
There is normally no IHT if the estate is below the £325,000 nil-rate band, or if everything above that band is left to a spouse/civil partner, a charity, or a community amateur sports club.
Nil-rate band and residence nil-rate band
The basic nil-rate band is £325,000 (frozen until April 2031). HMRC example: estate £500,000 with only the NRB → IHT £70,000 (40% of £175,000).
If you leave your home to children or grandchildren (direct descendants), the residence nil-rate band can add up to £175,000, taking the combined threshold to £500,000. Same £500,000 estate with a qualifying home → £0.
Official worked example (IHTM46070 / gov.uk): estate £490,000 including a £300,000 home left to children → IHT £0.
Transferring unused allowances between spouses
If you are married or in a civil partnership and the first to die does not use their full NRB or RNRB, the unused percentage can usually be transferred to the survivor’s estate.
With 100% unused NRB and RNRB transferred, a couple can potentially shelter up to £1,000,000 when a home goes to direct descendants — subject to taper and eligibility rules.
RNRB taper above £2 million
For estates worth more than £2,000,000, the available RNRB (including any transferred unused RNRB) reduces by £1 for every £2 over the threshold. At £2,350,000 with no transfer, the £175,000 RNRB is fully tapered away; with 100% transferred RNRB, full wipe-out is at £2,700,000 (HMRC IHTM46044).
Taper uses the estate after debts but before spouse exemption and most reliefs — enter that figure as the net estate, then put spouse/charity gifts in their own fields.
Official thresholds and rates
| Item | Amount / rate |
|---|---|
| Nil-rate band (NRB) | £325,000 |
| Residence nil-rate band (RNRB) | up to £175,000 |
| Combined (NRB + RNRB) | £500,000 |
| Couple (full unused transfer) | up to £1,000,000 |
| RNRB taper starts | £2,000,000 |
| Standard rate | 40% |
| Charity reduced rate | 36% (if ≥10% to charity) |
Estate ladder — IHT by scenario
Same net estate, three common setups. Figures from the calculator engine.
| Estate | NRB only | With RNRB | Full couple transfer |
|---|---|---|---|
| £325,000 | £0 | £0 | £0 |
| £500,000 | £70,000 | £0 | £0 |
| £750,000 | £170,000 | £100,000 | £0 |
| £1,000,000 | £270,000 | £200,000 | £0 |
| £1,500,000 | £470,000 | £400,000 | £200,000 |
| £2,000,000 | £670,000 | £600,000 | £400,000 |
Common mistakes
Who this helps
Estate checklist
- Confirm the net estate after debts (and whether taper above £2m applies).
- Check whether a home (or share) is left to direct descendants for RNRB.
- Include unused NRB/RNRB from a late spouse or civil partner if transferable.
- Separate spouse-exempt and charity gifts from the chargeable estate.
- Remember lifetime gifts within 7 years can use up NRB — not modelled here.
- File and pay via the executor; confirm deadlines with HMRC / a solicitor.
Inheritance Tax by estate size
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