UK Inheritance Tax Calculator
Estimate standard-rate estate Inheritance Tax using independently established taxable estate and available bands. See the residence-band taper separately from the property-value cap.
Rule year: 2026/27 · GBP · Sources checked
Standard-rate Inheritance Tax estimate
Ordinary standard-rate estate only, established UK tax scope and residence qualification. Enter the correct pre-exemption taper estate separately. No lifetime-gift charge/order, trusts, charity 36% rate, business/agricultural relief, downsizing addition, domicile/residence qualification or future pension-inheritance reform. Transferred bands must be verified independently.
For informational purposes only. This estimate is not financial advice, a tax return, a payroll calculation or a lender decision. See the supported circumstances and exclusions below.
How this calculator works
The ordinary nil-rate band and residence nil-rate band are separate allowances. A qualifying home can add residence allowance, but its amount is limited by the eligible property value and reduced for estates above the taper threshold. This estimate uses the established ordinary band you enter, including only confirmed transfers or reductions for earlier gifts. It charges the standard 40% rate on the remaining estate above available bands.
Formula and rules
Residence allowance = min(qualifying home value, max(0, £175,000 + transferred residence band − (taper estate − £2m) × 50%)). Tax = 40% × max(0, taxable estate − ordinary available band − residence allowance).
Assumptions and limitations
Ordinary standard-rate estate only, established UK tax scope and residence qualification. Enter the correct pre-exemption taper estate separately. No lifetime-gift charge/order, trusts, charity 36% rate, business/agricultural relief, downsizing addition, domicile/residence qualification or future pension-inheritance reform. Transferred bands must be verified independently.
Worked example
With a £600,000 estate, £325,000 available ordinary band and a £300,000 qualifying home, the £175,000 residence band is not tapered. Total bands are £500,000; £100,000 at 40% gives £40,000 estimated tax.
- Standard-rate Inheritance Tax estimate
- £40,000.00
- Available residence nil-rate band after taper
- £175,000.00
- Combined available nil-rate bands
- £500,000.00
- Estate value above available bands
- £100,000.00
Official sources and review
Reviewed against the sources below on 2026-10-07. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.
- GOV.UK: Inheritance Tax overview ↗
Standard £325,000 nil-rate band, qualifying home treatment and ordinary 40% rate; exceptions require separate review.
- HMRC: residence nil-rate band and taper ↗
£175,000 band, qualifying property-value cap and £1 per £2 taper above a £2 million estate.
Common questions
Can I always use a £500,000 allowance?
No. The residence band needs qualifying conditions and property value and may taper. Ordinary available band can also be affected by gifts and transfers.
Why are there two estate values?
The value for residence taper is before relevant exemptions/reliefs and can differ from the amount being charged in this simplified model.
Does this model charitable or business relief?
No. Those cases require separate eligibility and tax ordering, so do not use this standard-rate estimate as a complete estate return.