Inheritance Tax on £1,000,000 (UK 2026)
How much UK Inheritance Tax on a £1,000,000 estate? NRB only: £270,000. With RNRB on a £500,000 home to direct descendants: £200,000. Full unused NRB + RNRB transfer: £0. 10% charity gift (simplified): £207,000 at 36%. Adjust the calculator for your exact home value, spouse gifts, and transfers.
By Sammy S. · Founder · AuthorUpdated for 2026
Calculate from £1,000,000
Pre-filled with a £1,000,000 estate. Adjust home to descendants, transfers, or charity gifts.
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£200,000
Effective 20% of £1,000,000
- Residence nil-rate band applied: £175,000 (lower of home to direct descendants and available 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 £1,000,000 · no RNRB
| Net estate | £1,000,000 |
| NRB available | £325,000 |
| RNRB applied | £0 |
| Taxable | £675,000 |
| Rate | 40% |
| IHT due | £270,000 |
£1,000,000 → IHT £270,000 at 40%
Same estate with RNRB
£1,000,000 → IHT £200,000 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 — £1,000,000 estate
- £1,000,000 estate, NRB only → £270,000 IHT (taxable £675,000; effective 27%).
- £1,000,000 with RNRB on a £500,000 home to descendants → £200,000 (RNRB applied £175,000; saves £70,000 vs NRB only).
- £1,000,000 with 100% transferred NRB + RNRB → £0 (saves £270,000 vs NRB only).
- Leaving £100,000 (10%) to charity in this model → £207,000 at 36%.
- £1,000,000 is below the £2,000,000 RNRB taper threshold in this model.
- Lifetime gifts within 7 years and Business/Agricultural Relief are not modelled here.
Inheritance Tax on £1,000,000 — overview
Executors and families often search for Inheritance Tax on a £1,000,000 estate when planning probate, updating wills, or comparing whether leaving a home to children unlocks the residence nil-rate band.
On a £1,000,000 net estate (after debts), this model estimates £270,000 IHT if only the £325,000 nil-rate band applies — that is 40% of the £675,000 taxable slice (effective 27% of the whole estate).
£1,000,000 sits below the £2,000,000 RNRB taper threshold, so the full residence nil-rate band (up to £175,000, plus any transferred unused RNRB) can apply when a home goes to direct descendants.
Modelling a £500,000 home to children/grandchildren reduces IHT from £270,000 to £200,000 — a saving of £70,000 versus NRB only.
With 100% unused NRB and RNRB transferred from a late spouse, the estimate falls further to £0 (saving £270,000 versus NRB only).
Spouse/civil partner gifts remain exempt, and leaving 10% or more of the net estate to charity may unlock the 36% reduced rate on the taxable slice (simplified check — see methodology).
IHT estimates on £1,000,000
Taxable £675,000 · effective 27%
RNRB £175,000 · saves £70,000
Saves £270,000 vs NRB only
£500,000 exempt
36% rate · gift £100,000
RNRB capped at £100,000
Step-by-step on £1,000,000
- Net estate£1,000,000
- Nil-rate band− £325,000
- Taxable amount£675,000
- IHT at 40%Effective 27% of the estate£270,000
- Net estate£1,000,000
- Residence nil-rate bandHome to descendants modelled at £500,000− £175,000
- Nil-rate band− £325,000
- Taxable amount£500,000
- IHT at 40%Saves £70,000 vs NRB only£200,000
Scenario comparison for £1,000,000
| Scenario | Taxable | RNRB | Rate | IHT |
|---|---|---|---|---|
NRB only No home to direct descendants — standard nil-rate band only. | £675,000 | £0 | 40% | £270,000 |
Home to children (RNRB) Qualifying home of £500,000 left to direct descendants. | £500,000 | £175,000 | 40% | £200,000 |
Full couple transfer 100% unused NRB and RNRB from a late spouse/civil partner. | £0 | £350,000 | 40% | £0 |
Partial home to a child Only £100,000 of home left to a direct descendant (RNRB capped). | £575,000 | £100,000 | 40% | £230,000 |
Half to surviving spouse £500,000 spouse-exempt; remainder taxed after NRB. | £175,000 | £0 | 40% | £70,000 |
10% to charity £100,000 charity gift (exempt) + simplified 36% rate check. | £575,000 | £0 | 36% | £207,000 |
NRB-only worked estimate for £1,000,000
Chargeable estate £1,000,000, available NRB £325,000, taxable £675,000.
IHT at 40% = £270,000 (effective 27% of £1,000,000). This matches the gov.uk pattern: tax only the slice above the nil-rate band.
Compare with HMRC’s public overview example on £500,000 (NRB only → £70,000) — the same 40% rate and £325,000 band scale up to £1,000,000.
Residence nil-rate band on £1,000,000
Assuming £500,000 of home goes to direct descendants, RNRB applied is £175,000.
Total allowances £500,000 → taxable £500,000 → IHT £200,000.
Versus NRB only, that is a modelled saving of £70,000. RNRB is capped at the lower of the home left to direct descendants and the available RNRB after any transfer and taper.
Unused spouse allowances on a £1,000,000 estate
If the first spouse/civil partner did not use their full NRB or RNRB, the unused percentage can usually transfer to the survivor.
With 100% unused NRB and RNRB transferred and a £500,000 home to descendants, this model estimates £0 on £1,000,000 (NRB available £650,000; RNRB applied £350,000).
That is £270,000 less than the NRB-only figure of £270,000. Transfers must be claimed — they are not automatic.
Planning notes for a £1,000,000 estate
Spouse/civil partner gifts and charity/CASC legacies are generally exempt. Modelling half the estate (£500,000) to a surviving spouse with no RNRB returns £70,000 IHT here.
A simplified 10% charity gift of £100,000 returns £207,000 at 36%. Use HMRC’s reduced-rate calculator for the full baseline-amount test.
Because £1,000,000 is under £2,000,000, taper does not reduce RNRB in these scenarios — but gifts and growth that push a future estate over £2,000,000 can change that.
This page does not model lifetime gifts within seven years, Business Relief, Agricultural Relief, trusts, or downsizing additions.
Common mistakes on £1,000,000
Who this £1,000,000 page helps
Checklist for £1,000,000
- Budget about £270,000 if no RNRB applies on £1,000,000.
- Check whether a home (modelled here at up to £500,000) goes to direct descendants — RNRB can save about £70,000.
- Claim transferable unused NRB/RNRB from a late spouse where available.
- Enter the estate before spouse exemption so any £2m RNRB taper is calculated correctly.
- Separate spouse-exempt and charity gifts from the chargeable estate.
- Ask a solicitor about lifetime gifts and reliefs not covered here.