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Inheritance Tax Exposure Calculator

Estimate IHT exposure on a UK estate using the £325k nil-rate band, £175k residence nil-rate band and spousal transfers.

Short answer

UK Inheritance Tax (IHT) is 40% on estate value above the £325,000 nil-rate band. Add the £175,000 Residence Nil-Rate Band if you leave a home to direct descendants — total £500,000 per person, or £1 million for a couple. Spouses inherit tax-free and can transfer unused allowances. Gifts more than 7 years before death are usually exempt; tapered relief applies between 3–7 years.
Step 1 of 10%

The estate

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Calculation method, coverage and version

Inputs used
Total estate value, Value of main home (passing to direct descendants), Married / civil partnered with unused NRB?, % to charity?.
Calculation approach
The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage
Care & Will Planning. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version
No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.
Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

Primary sources and official verification

Use these official sources to verify current rules before acting. Coverage and dates can differ across England, Scotland, Wales and Northern Ireland.

See the sitewide source policy.

How it works

The estimator sums your estate (property + investments + savings + pensions outside the death-tax shield from April 2027), subtracts allowances (NRB + RNRB + spouse transfer + charity), then applies 40% to the excess. RNRB tapers above £2m estate (lost £1 for every £2 over).

Worked example

Widow with £750,000 home + £400,000 ISAs/savings = £1.15m estate. Allowances: £325k NRB + £175k RNRB + transferred spouse's £325k + £175k = £1m. Taxable: £150k × 40% = £60,000 IHT.

Who should use this

  • •Anyone with an estate over £325,000
  • •Couples planning around the £1m joint allowance
  • •Parents giving early gifts to children
  • •People considering trusts or business relief

Common mistakes

  • ×Forgetting that pensions move into IHT scope from April 2027
  • ×Losing RNRB by leaving the home to nieces/nephews instead of children
  • ×Making large gifts and dying within 7 years
  • ×Not using the £3,000 annual gift exemption each year

Frequently asked questions

Is life insurance counted?▾

Yes unless written in trust — then it pays out outside the estate.

Can I give my house to my kids?▾

Yes but if you keep living there it's a 'gift with reservation' and stays in your estate.

What about charity gifts?▾

Estates leaving 10%+ to charity get a reduced IHT rate of 36%.

Related calculators

Care Home Fees Calculator →Later Life Planning Checklist →LPA Checker →Capital Gains Tax Calculator →