About this calculator
The Inheritance Tax Calculator estimates potential UK IHT on an estate after nil-rate bands, residence nil-rate band, charity gifts, and business relief inputs. It is useful for high-level estate planning conversations and understanding why more estates may become taxable as thresholds remain frozen. IHT can be complex, especially for gifts, trusts, pensions, spouse transfers, and property relief.
IHT methodology
The calculator deducts available thresholds and reliefs from the estate, then applies the relevant IHT rate to the taxable amount.
- Taxable estate = estate value - thresholds - reliefs - exempt gifts
- IHT due = taxable estate x IHT rate
How to use the Inheritance Tax
- Enter the main value or details requested by the calculator.
- Check the unit, date, rate, or category selected before calculating.
- Review the result and any supporting breakdown shown on the page.
- Change one input at a time if you want to compare scenarios.
- Keep the result with the source record if you need to refer back to it later.
Worked example
Individual estate
Input: Estate GBP 600,000, property to children
Calculation: 600,000 - 325,000 - 175,000
Result: Taxable estate is GBP 100,000, before applying the IHT rate.
Planning scenario
Input: A user enters the main details requested by the Inheritance Tax.
Calculation: Taxable estate = estate value - thresholds - reliefs - exempt gifts
Result: The result gives an estimate that can be checked against source documents, official guidance, or the relevant record.
How to read the result
The Inheritance Tax is designed to make the method visible, not only to produce a final number. Read the result alongside the formula, the assumptions entered, and any supporting notes on the calculator page.
If the result affects money, eligibility, deadlines, health, study planning, or legal rights, keep a copy of the inputs used. That makes it easier to explain or update the estimate later.
Inputs worth checking
- Dates and periods
- Dates, billing periods, tax years, academic years, and deadline periods can change the result. Make sure the period entered matches the document or question you are checking.
- Rates and thresholds
- Where rates, thresholds, tariffs, or grade boundaries are involved, use the current source rather than an old note or rounded memory.
- Rounding
- Small differences are normal when a calculator rounds intermediate steps differently from a bill, statement, payslip, or official table.
Limitations
This calculator provides an estimate only and is not financial or tax advice.
- Trusts, lifetime gifts, business relief, pensions, and domicile can change the result.
- Estate planning should be reviewed by a qualified adviser.
Frequently asked questions
What is the nil-rate band?
It is the amount an estate can usually pass before IHT is charged, subject to rules and transfers.
What is the residence nil-rate band?
It is an additional allowance that may apply when a home passes to direct descendants.
Can gifts reduce IHT?
Some gifts can reduce IHT, especially if the donor survives seven years, but detailed rules apply.
What should I check before relying on the Inheritance Tax?
Check the inputs against the source document or real-world record that controls the calculation. For rules-based topics, also check the latest official guidance because thresholds and definitions can change.
Can I use the result as a final decision?
Use the result as an educational estimate and planning aid. It should not replace professional advice, official decisions, lender quotes, medical guidance, legal advice, or tax advice where those apply.
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