Is this calculator updated for the 2026/27 tax year?

Yes, all calculators are fully updated with the latest HMRC thresholds, personal allowances, and National Insurance rates for 2026/27.

Can I use this for official tax submissions?

These tools are for estimation and illustrative purposes only. For official tax returns, please consult a qualified accountant or reference HMRC directly.

Inheritance Tax Calculator UK (2026/27): Nil-Rate Bands & Gifts

Inheritance Tax Calculator

✓ Verified for 2026/27

Estate Details

Total Estate Value

Include property, cash, investments, and personal belongings.

Gifts in Last 7 Years

Gifts to individuals that do not fall under standard annual exemptions.

Passing Home to Descendants? Qualifies for the Residence Nil Rate Band (up to £175k)

Marital Status

Transfer Spouse's Unused Allowances? Allows transferring partner's unused NRB and RNRB (doubles allowances up to £1m)

Leaving 10%+ of Net Estate to Charity? Reduces Inheritance Tax rate from 40% to 36%

Total Estate + Gifts

£0

gross value

Total Allowances

£0

tax-free threshold

Tax Due

£0

estimated IHT

Passed to Heirs

£0

net estate passed

Inheritance Tax Breakdown

Gross Estate Value £0

Taxable Gifts (7 Years) £0

Nil Rate Band £325,000

Residence Nil Rate Band £0

Total Allowance £0

Taxable Estate Amount £0

Inheritance Tax (40%) £0

Passed to Heirs 0%

Inheritance Tax 0%

ℹ️ The standard Inheritance Tax rate is 40%. The Residence Nil Rate Band (RNRB) is capped at £175,000 and starts tapering by £1 for every £2 the estate is worth over £2,000,000. Under current rules, unused allowances can be transferred to a surviving spouse or civil partner, meaning their combined tax-free allowance can reach up to £1,000,000.

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Verified for Accuracy (2026/27 Tax Year)

Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.

How We Calculated This

Input variables: Enter the relevant amounts, rates, or percentages in the form.
Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.

With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.

Related Calculators

Frequently Asked Questions

What is the inheritance tax threshold and what is the nil-rate band?

Inheritance Tax (IHT) is a tax on the estate (property, cash, and possessions) of someone who has passed away. The standard tax-free threshold, known as the ‘nil-rate band’, is £325,000. If your estate is worth less than £325,000, no inheritance tax is due. If you leave your primary residence to your direct descendants (such as children, step-children, or grandchildren), you qualify for an additional ‘residence nil-rate band’ of £175,000. This brings your total individual tax-free threshold to £500,000. Crucially, spouses and civil partners can pass their entire estate to each other completely tax-free and transfer any unused nil-rate bands to the surviving partner on death, allowing a surviving spouse to pass on up to £1 million tax-free.

What is the inheritance tax rate and how do gifts affect it?

The standard inheritance tax rate is 40%, charged only on the portion of your estate’s value that exceeds your available tax-free thresholds. The rate drops to 36% if you leave at least 10% of your net estate to a registered charity. To reduce your estate’s taxable value, you can utilize lifetime gifting allowances. You can gift up to £3,000 per year (the annual exemption) tax-free. Gifts exceeding this amount are classified as ‘Potentially Exempt Transfers’ (PETs). If you survive for at least 7 years after making the gift, it becomes entirely tax-free. If you pass away within 7 years, the gift is added back to your estate, though the tax rate is reduced on a sliding scale (taper relief) for gifts made between 3 and 7 years before death.