Inheritance Tax Calculator 2025/26
Estimate your IHT liability, see how married couple allowances work, and find strategies to reduce or eliminate Inheritance Tax on your estate.
Try another scenario
How to Use This Calculator
IHT Estimate tab
The default tab. Enter your total estate value (property, savings, investments, possessions, life insurance payouts), main residence value, and whether you have direct descendants. The calculator shows your nil-rate band (NRB), residence nil-rate band (RNRB), taxable estate, and IHT at 40% (or 36% if qualifying for the charitable reduced rate). Expand "More options" to add debts and charitable gifts.
Married Couple tab
See how spouse-to-spouse transfers and transferable allowances work on second death. Enter the combined estate value, first spouse's unused NRB percentage, and property value. The calculator shows combined NRB (up to £650,000), combined RNRB (up to £350,000), and total combined allowance (up to £1,000,000).
Reduce IHT tab
Enter your estate value to see ranked strategies for reducing Inheritance Tax. Each strategy shows potential IHT savings — from gifts out of income (immediately exempt) to PETs (7-year rule), charitable giving, Business Property Relief (BPR), Agricultural Property Relief (APR), trusts, and life insurance in trust.
Share your result
Every input is encoded in the URL. Click Share to send your exact scenario to a spouse, financial adviser, or solicitor.
The Formula
Inheritance Tax is charged on the value of an estate above the nil-rate band:
RNRB = min(£175,000, Property Value) − Taper*
*Taper = max(0, (Net Estate − £2,000,000) ÷ 2)
Taxable Estate = Net Estate − Charitable Gifts − NRB (£325,000) − RNRB
IHT Due = Taxable Estate × 40%
(or 36% if charitable gifts ≥ 10% of net estate)
For married couples, the unused percentage of the first spouse’s NRB and RNRB transfers to the surviving spouse. If both spouses used none of their allowances and the home passes to children, the combined tax-free amount is £1,000,000.
Example
David and Margaret — Married couple, £1.2M estate, 2 children
David and Margaret own a home worth £500,000 and have £700,000 in savings, investments and other assets. Total estate: £1,200,000. They have 2 adult children. David dies first and leaves everything to Margaret (spouse-exempt). Margaret then dies with the full £1.2M estate.
Without planning (single NRB only)
With married couple allowances
By claiming David’s transferred NRB and RNRB, the family saves £270,000 in Inheritance Tax. The children inherit £1,120,000 instead of £850,000. Margaret’s executors claim the transfer using HMRC form IHT402.