Estate

Inheritance Tax Calculator

Estate IHT using the nil-rate band and residence nil-rate band, including RNRB taper.

Tax year 2026/27

Net estate value

Total estate after debts and exemptions.

Required to claim the residence nil-rate band (RNRB).

Value of the home

Caps the RNRB at the property's value.Transferable nil-rate band

Unused NRB from a late spouse / civil partner (0–100%).Transferable residence NRB

Unused RNRB from a late spouse / civil partner (0–100%).

Qualifies the estate for the reduced 36% rate.

Inheritance Tax due

£120,000

Charged at 40% on the taxable estate

Nil-rate band£325,000

Residence nil-rate band£175,000

Total allowance£500,000

Taxable estate£300,000

Inheritance Tax£120,000

How it works

Every estate has a nil-rate band of £325,000. An additional residence nil-rate band of up to £175,000 is available when a home passes to direct descendants, capped at the value of the home. Both bands can be increased by any percentage transferred from a late spouse or civil partner.

The residence nil-rate band tapers away by £1 for every £2 the estate exceeds £2,000,000. Inheritance Tax is charged at 40% on the estate above the available allowances, reduced to 36% where at least 10% of the net estate is left to charity.

← All calculators