UK Inheritance Tax Calculator (2026)

Everything you own at death: property, savings, investments, valuables. Exclude most defined-contribution pensions with named beneficiaries.

Value of your primary home only (not BTLs). Check the “left to descendants” toggle to unlock the RNRB.

Married: full spouse exemption applies — no IHT. Widowed: you can inherit unused NRB from late spouse. Enter what % of theirs was used.

Only include assets that clearly qualify for BPR/APR — unlisted trading shares, AIM shares held 2+ years, working farms. When in doubt, consult a STEP adviser.

Gifts over £3k made in the last 7 years — pick the date and amount. The tool will show current taper and potential savings if you survive longer.

The waterfall shows exactly where the estate goes: relief, relief, relief, taxable, HMRC. Each bar is a lever you can pull.

Within 2 years of death, beneficiaries can vary the will to redirect gifts — e.g. pass an inheritance to children instead of keeping it, reducing their own future estate. Fully tax-effective for IHT and CGT if properly structured.

A whole-of-life policy written in trust pays a lump sum to beneficiaries outside the estate — effectively funding the IHT bill without inflating the estate. Premiums can be paid from the £3k annual exemption or as normal expenditure out of income.

Leave 10%+ of your net estate to charity and the remaining estate is taxed at 36% instead of 40%. For a £1m net taxable estate this can save £40,000 in IHT while giving £100k+ to charity.

Giving away an asset but continuing to use it (e.g. gifting the house but still living in it rent-free) means HMRC treats it as still in the estate. Pay a full market rent, or use a Home Loan Scheme, to break the reservation.

Pair this with the Wills & LPA Cost Planner to draft a proper will, the Probate DIY vs Solicitor for executor-cost planning, and the Life Insurance Estimator to size the whole-of-life cover that funds the IHT bill.