Inheritance Tax Calculator UK 2026/27 – Estate, Home & Pensions

UK Inheritance Tax Calculator

Estimate potential UK Inheritance Tax (IHT) for the 2026/27 tax year.

TAX YEAR 2026/27 6 Apr 2026 – 5 Apr 2027

Your Estate Details

Total estimated value of property, savings, investments, and possessions.
Estimated value of your main home or property.
Mortgages, loans, funeral expenses, and other debts.
Estimated gifts made before death.
Amount left to registered charities.
Advanced Options
Since 6 April 2026, 100% relief applies only to the first £2.5 million of combined business and agricultural property (any unused amount can pass to a spouse or civil partner). Relief above that is 50%, and AIM shares get 50%. Enter the relief amount, not the asset value.
Shares the same £2.5 million 100% relief allowance as Business Relief (50% above it). Enter the relief amount.

Your Estimated Results

Estimated Taxable Estate
£0.00
Estimated Inheritance Tax
£0.00
Amount Passed to Beneficiaries
£0.00
Effective IHT Rate
0.00%

Simple Explanation

Enter your estate details to estimate possible UK Inheritance Tax.
View Detailed Breakdown
Net Estate £0.00
Nil-Rate Band Used £0.00
Residence Nil-Rate Band £0.00
Total Allowances £0.00
Gifts Added Back (after £3,000 exemption) £0.00
Tax Rate Used 40%

This calculator provides simplified inheritance tax estimates only and does not constitute tax, financial, or legal advice.

UK inheritance tax rules can be complex and allowances may vary depending on personal circumstances.

For complex estates, trusts, business assets, or international assets, consult a qualified tax adviser.

Most estates in the UK don’t pay any Inheritance Tax, but the ones that do usually involve a house, and the bill can be large. This calculator gives you a rough idea for 2026/27: add up what the estate is worth, take off debts and gifts to charity, apply the tax-free allowances, and it shows the likely IHT bill and what your beneficiaries would receive.

For “Total Estate Value”, include everything: property, savings, investments, valuables and possessions. Then enter the home’s value separately, because it decides whether the extra residence allowance applies. Debts include the mortgage, other loans and funeral costs.

Inheritance Tax thresholds 2026/27

AllowanceSingle personMarried couple or civil partners
Nil-rate band£325,000£650,000
Residence nil-rate band (home left to children or grandchildren)£175,000£350,000
Maximum tax-free£500,000£1,000,000

Anything above the available allowances is taxed at 40%, or 36% if at least 10% of the net estate goes to charity. Both bands are frozen at these levels until April 2031. Figures are from GOV.UK.

Three examples

An estate under the threshold

£250,000 in total, £20,000 of debts and £5,000 left to charity leaves a net estate of £225,000. That’s well below the £325,000 nil-rate band, so there’s no IHT and the family receive £225,000.

A £1 million estate, home not going to children

With £50,000 of debts, the net estate is £950,000. Only the £325,000 nil-rate band applies, so £625,000 is taxed at 40%: £250,000. The beneficiaries get £700,000. If the house had gone to the children, the extra £175,000 allowance would have cut the bill by £70,000.

A married couple leaving the home to their children

On a £1.2 million estate where the surviving spouse has inherited their partner’s unused allowances, there’s £1 million tax-free. £200,000 is taxable, so the bill is £80,000.

IHT on a £500,000, £1 million and £2 million estate

Assuming the home goes to children, with no gifts or charity donations:

Estate after debtsSingle personMarried couple (full transfer)
£500,000£0£0
£1,000,000£200,000£0
£2,000,000£600,000£400,000

At £2 million the residence band is still available in full. Above that it starts to disappear: you lose £1 for every £2 over £2 million. A single person loses it entirely at £2.35 million, and a couple’s £350,000 is gone at £2.7 million.

The residence nil-rate band

This extra allowance of up to £175,000 only applies when your home, or a share of it, goes to direct descendants: children, stepchildren, adopted or foster children and grandchildren. Leave it to a nephew or a friend and it doesn’t apply. Choose “Yes” for “Leaving Home to Children?” to include it.

Married couples and civil partners

Everything you leave to a spouse or civil partner is free of IHT. Whatever part of your nil-rate band and residence band you don’t use passes to them, so when the second partner dies, up to £1 million can go to the children tax-free. If you’re working out the second estate, choose “Yes” for transferring a late spouse’s allowance. Unmarried couples don’t get any of this, however long they’ve been together.

Pensions from April 2027

For deaths on or after 6 April 2027, most unused pension funds and pension death benefits will count as part of the estate. Pensions left to a spouse or civil partner stay exempt, and death-in-service benefits and dependants’ scheme pensions are excluded. Executors report and pay the tax, though the pension scheme can pay it straight to HMRC.

The calculator doesn’t have a separate pension box yet. For now, add any pension pots that wouldn’t go to your spouse into “Total Estate Value”. For many people, this change will be the thing that pushes their estate over the threshold.

Gifts and the 7-year rule

Gifts are usually free of IHT if you live for seven years after making them. If you die sooner, they’re added back and use up your £325,000 nil-rate band first. Where gifts go over the band, taper relief reduces the tax on gifts made three to seven years before death:

Years between gift and deathIHT rate on the gift
Less than 340%
3 to 432%
4 to 524%
5 to 616%
6 to 78%
7 or more0%

Some gifts never count: £3,000 a year under the annual exemption, and regular gifts out of surplus income that don’t affect your standard of living. Keeping a simple record of what you’ve given and when makes life much easier for your executors.

What the calculator can’t tell you

It’s a simplified estimate. It doesn’t handle trusts, business or agricultural property relief, foreign assets, or the detailed rules for how gifts and taper relief interact. Probate fees and legal costs aren’t included either. If the estate is near or over the threshold, it’s worth speaking to a solicitor or tax adviser who deals with estates.

Questions people ask

What is the Inheritance Tax threshold for 2026/27?

The nil-rate band is £325,000, plus up to £175,000 residence nil-rate band if your home goes to children or grandchildren. That’s up to £500,000 per person or £1 million for a married couple.

How much Inheritance Tax is due on a £1 million estate?

About £200,000 for a single person leaving their home to children (£500,000 above the allowances at 40%). A married couple with full transferred allowances would usually pay nothing.

Will my pension be subject to Inheritance Tax?

For deaths on or after 6 April 2027, most unused pension funds and death benefits will count towards the estate. Pensions left to a spouse or civil partner remain exempt.

What is the 7-year rule?

Gifts are free of IHT if you survive seven years. If you die sooner, gifts above the £325,000 nil-rate band can be taxed, with taper relief for gifts made three to seven years before death.

Can leaving money to charity reduce Inheritance Tax?

Yes. Gifts to charity are exempt, and if at least 10% of the net estate goes to charity, the rate on the rest falls from 40% to 36%.

Related: Capital Gains Tax Calculator · Stamp Duty Calculator

These are estimates only and not tax, legal or financial advice. Inheritance Tax depends on the full facts of an estate.