UK Inheritance Tax (IHT) Calculator 2026
Calculate your tax-free allowance and estimated Inheritance Tax liability for England & Wales.
Include property, savings, investments & possessions
Leaving 10%+ to charity reduces IHT rate from 40% to 36%.
Calculation Result
Estimated IHT Payable
£0
Your estate is completely within the tax-free allowance.
How a Will Protects You
Without a valid Will, statutory intestacy rules decide how your estate is distributed, which can accidentally trigger unnecessary Inheritance Tax bills.
Protect your estate — £35How does UK inheritance tax work?
Inheritance Tax (IHT) is a tax on the estate (the property, money and possessions) of someone who has died. In England and Wales, you usually do not have to pay Inheritance Tax if:
- The value of your estate is below the £325,000 Nil-Rate Band threshold.
- You leave everything above the threshold to your spouse or civil partner.
- You leave everything above the threshold to an exempt beneficiary, such as a UK registered charity.
What is the residence nil-rate band?
If you own a home and leave it to direct descendants (children, stepchildren, or grandchildren), you get an additional £175,000 tax-free allowance called the Residence Nil-Rate Band. Combined with the £325,000 base allowance, an individual can pass on up to £500,000 tax-free.
For married couples, unused allowances transfer to the surviving spouse, allowing couples to pass on up to £1,000,000 tax-free.