UK inheritance tax calculator
Enter what the estate is worth, the home and any unused pension funds. The calculator applies the bands and the rate HMRC uses.
Your figures
The result updates as you change a figure. Nothing you type is saved.
Result
Inheritance tax: ￡200,000
| Estate counted | ￡1,000,000 |
|---|---|
| Pension funds counted | ￡0 |
| Nil-rate band | ￡325,000 |
| Residence nil-rate band | ￡175,000 |
| Taxable part | ￡500,000 |
| Share of the estate paid in tax | 20% |
| Left to the heirs | ￡800,000 |
How this is worked out
Everyone has a nil-rate band of ￡325,000, and a residence nil-rate band of up to ￡175,000 when the home goes to children or grandchildren. A married couple or civil partners can pass their unused bands to the survivor, so the second estate can use both. Tax is 40% of the part above the bands.
The residence band is reduced by half of the part of the estate above ￡2,000,000. From April 2027, unused pension funds count in the estate too.
Assumptions and limits
Gifts made in the seven years before death, the lower rate for estates that leave part to charity, and business or agricultural relief are not included. The estate is counted after debts.
Sources
- GOV.UK - Inheritance Tax thresholds and interest rates (checked 2026-10-28)
- GOV.UK - Inheritance Tax (checked 2026-10-28)
- GOV.UK - Inheritance Tax: residence nil rate band (checked 2026-10-28)
- GOV.UK - Inheritance Tax on unused pension funds and death benefits (checked 2026-10-28)
An illustration with simplified rules, not financial advice.