Calculate Inheritance Tax
£
£
£
Inheritance Tax Estimate
Estimated IHT Due
£0
Effective rate: 0%
Net Estate (after debts)£0
Nil-Rate Band£325,000
Residence NRB£0
Total Tax-Free£0
Taxable Estate£0
IHT Rate Applied40%
How Inheritance Tax Works in 2026/27
Inheritance Tax (IHT) is charged at 40% on the value of an estate above the nil-rate band (NRB) of £325,000. However, most estates are able to claim additional allowances that significantly reduce or eliminate the IHT bill.
If a main residence is passed to direct descendants (children or grandchildren), an additional Residence Nil-Rate Band (RNRB) of £175,000 applies. Married couples and civil partners can combine their nil-rate bands, giving a potential total tax-free allowance of £1,000,000.
Frequently Asked Questions
What is the inheritance tax threshold in 2026/27? ▼
The standard nil-rate band is £325,000. With the residence nil-rate band (£175,000) and a spouse transfer, a married couple can pass up to £1,000,000 free of IHT.
Do I pay IHT on gifts? ▼
Gifts made more than 7 years before death are generally exempt. Gifts within 7 years may be subject to IHT on a sliding scale (taper relief). There are also annual exemptions of £3,000 per year.
Is everything left to a spouse taxable? ▼
No. Assets passed to a UK-domiciled spouse or civil partner are completely exempt from IHT, regardless of the amount. The unused nil-rate band can also be transferred to the surviving spouse.
All figures are estimates. IHT is complex — always consult a qualified financial adviser or solicitor.