UK Inheritance Tax Calculator
Enter the estate value and whether the main residence passes to direct descendants to estimate Inheritance Tax due.
UK Inheritance Tax Calculator
Estimate UK Inheritance Tax due on an estate, including the residence nil-rate band.
UK estates benefit from a £325,000 tax-free nil-rate band, plus an extra £175,000 residence nil-rate band if a main home passes to children or grandchildren. Everything above those bands is taxed at 40%, reduced to 36% if at least 10% of the estate goes to charity. Anything left to a spouse or civil partner is entirely exempt.
Example
- With the default values shown above, this calculator returns: Residence Nil-Rate Band ≈ GBP 175,000.00; Residence Band Taper (estates over £2m) ≈ GBP 0.00; Total Tax-Free Band ≈ GBP 500,000.00; Taxable Estate ≈ GBP 100,000.00; Inheritance Tax Due ≈ GBP 40,000.00.
Frequently Asked Questions
What is the residence nil-rate band?
An extra £175,000 tax-free allowance available when a main residence is left to children, grandchildren or other direct descendants, on top of the standard £325,000 nil-rate band.
Does leaving money to charity reduce the rate?
Yes — if at least 10% of the net estate is left to charity, the Inheritance Tax rate on the rest drops from 40% to 36%.