01
The £325,000 nil-rate band
Most estates have a basic Inheritance Tax threshold of £325,000 before IHT is normally charged.
Use our inheritance tax calculator to get a quick estimate of how much Inheritance Tax could potentially be due on your estate.
Add your property, savings, investments and other assets, then account for debts and the main Inheritance Tax allowances. It only takes a couple of minutes.
Enter approximate values below. The calculator will update your estimate automatically as you go.
From 6 April 2027, most unused pension funds and pension death benefits will be included within an estate for Inheritance Tax.
Enter the approximate current value of your share of each asset.
Certain debts can normally be deducted when establishing the value of an estate.
A few additional details help us make the estimate more useful.
Your estate and the allowances available to it can be affected by your family circumstances, property, previous gifts and how your assets are arranged.
Most estates have a basic Inheritance Tax threshold of £325,000 before IHT is normally charged.
A further residence allowance of up to £175,000 may be available when a qualifying home passes to direct descendants.
Qualifying transfers between spouses or civil partners are generally exempt, and unused allowances may also be transferable.
The residence nil-rate band begins to reduce when the value of an estate exceeds £2 million.
Some gifts can remain relevant for Inheritance Tax if you die within seven years of making them.
From 6 April 2027, most unused pension funds and death benefits will become part of the estate for IHT purposes.
If the calculator suggests your estate could face an Inheritance Tax liability, there may be planning options worth exploring.
Estate planning is about much more than tax. It is about making your wishes clear, protecting the people important to you and ensuring your affairs are organised appropriately.
It is designed to provide a useful first estimate based on the information you enter and the main UK Inheritance Tax allowances. It cannot account for every personal circumstance, relief, exemption or complex estate-planning arrangement.
The standard rate is currently 40% on the part of an estate that is subject to Inheritance Tax. Different rules can apply, including a reduced rate in some circumstances where sufficient assets are left to charity.
A residence nil-rate band of up to £175,000 may be available when a qualifying residence is passed to direct descendants. This allowance can be reduced for larger estates.
The treatment of pensions is changing. From 6 April 2027, most unused pension funds and pension death benefits will be brought within an individual’s estate for Inheritance Tax purposes. The calculator lets you compare the two scenarios.
Some lifetime gifts can be exempt, while others may remain relevant for Inheritance Tax for up to seven years. The rules around gifts and taper relief can be complicated, so the calculator only provides a simplified estimate.
You can read the official GOV.UK guidance on Inheritance Tax .
If your estate could face an Inheritance Tax liability, speak to CMME about your estate planning options and the wider plans you may want to consider.