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Inheritance Tax (IHT) Calculator

Estimate the inheritance tax liability on your estate under current UK rules (2024/25 tax year).

Your Estate

Your Circumstances

Applies if your spouse has passed away and didn't use their nil-rate band.

How This Calculator Works

This inheritance tax calculator uses current UK thresholds to estimate the IHT liability on your estate. It factors in the nil-rate band (£325,000), the residence nil-rate band (£175,000 when leaving your home to direct descendants), transferable allowances from a deceased spouse, the taper for estates over £2 million, and the reduced 36% rate for charitable legacies of 10% or more.

Gifts made within 7 years of death are added back into the estate for IHT purposes. Taper relief may apply to gifts made 3–7 years before death, but this calculator applies the full rate for simplicity.

For tailored estate planning advice (including trusts, wills, and strategies to reduce your IHT exposure), speak to one of our estate planning specialists.

Frequently Asked Questions

What is the current IHT threshold?
The nil-rate band is £325,000 per person. If you leave your main residence to direct descendants, an additional residence nil-rate band of £175,000 applies, giving a potential threshold of £500,000 per person.
Do married couples get a higher threshold?
Yes. When the first spouse dies and leaves everything to the surviving spouse, the unused nil-rate band and residence nil-rate band can be transferred, potentially giving a combined threshold of up to £1,000,000.
Are gifts included in the estate?
Gifts made within 7 years of death are potentially chargeable. Taper relief may reduce the tax on gifts made 3–7 years before death. Annual exemptions of £3,000 per year and small gifts of £250 per person are excluded.
What about pensions?
Most defined contribution pensions fall outside your estate for IHT purposes. However, from April 2027, pension death benefits may become subject to IHT under proposed changes. Please speak to an adviser for the latest guidance.
How can I reduce my IHT liability?
Strategies include making lifetime gifts, setting up trusts, leaving legacies to charity, using business and agricultural property relief, and ensuring you utilise all available allowances. Our estate planning team can advise on the best approach for your circumstances.

Worried About Inheritance Tax?

Our estate planning specialists can help you protect your wealth for future generations.

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