What is the inheritance tax rate in the UK?

Inheritance tax is charged at 40% on the value of an estate above the threshold. The rate reduces to 36% if at least 10% of the net estate is left to a UK-registered charity.

🇬🇧 UK Financial Tools · 2026/27

UK Inheritance Tax Calculator
estimate your IHT bill instantly

Enter your estate details to calculate Inheritance Tax for 2026/27 — includes nil-rate band, residence nil-rate band, spouse transfers, gifts and charitable relief.

✓ 2026/27 thresholds ✓ Residence nil-rate band ✓ Spouse/civil partner transfer ✓ Charitable legacy relief

Total estate value

Total value of all assets minus any debts and liabilities

Estate type

Residential property left to direct descendants?

Value of the residential property

Used to determine the residence nil-rate band (max £175,000 per person, or £350,000 for a couple)

Gifts made in the last 7 years

Potentially exempt transfers — gifts above annual exemptions made within 7 years of death

Charitable legacy (% of estate)

Leaving 10% or more to charity reduces the IHT rate from 40% to 36%

Inheritance Tax due

£—

Estate value—

Plus: gifts in last 7 years—

Nil-rate band—

Residence nil-rate band—

Charitable legacy—

Taxable estate—

IHT rate—

Summary

How Inheritance Tax is calculated

IHT is charged at 40% on the value of an estate above the applicable threshold. The standard nil-rate band is £325,000. An additional residence nil-rate band of £175,000 applies when a main home is left to direct descendants — giving a combined threshold of up to £500,000 per person. Married couples and civil partners can effectively combine their allowances, reaching up to £1 million.

The residence nil-rate band

The RNRB of £175,000 (£350,000 for a couple) is tapered away for large estates. For every £2 the estate exceeds £2 million, the RNRB reduces by £1 — so an estate of £2.35 million or more receives no RNRB at all. The RNRB cannot exceed the value of the property being left to descendants.

Charitable legacy relief

If you leave at least 10% of your net estate to a UK-registered charity, the IHT rate on the taxable remainder drops from 40% to 36%. This can make charitable giving in a will highly tax-efficient for larger estates.

Gifts and the 7-year rule

Gifts made more than 7 years before death are generally outside the estate. Gifts made within 7 years are added back — the calculator adds them to the estate value above. Taper relief may reduce the tax on gifts made between 3 and 7 years before death, but is not included in this simplified estimate.

UK Inheritance Tax Calculator 2026/27

This calculator estimates your Inheritance Tax (IHT) liability for the 2026/27 tax year. Enter your estate value, whether a home is left to direct descendants, and any applicable spouse allowance transfers to see your estimated IHT bill and effective tax rate.

IHT thresholds for 2026/27

Situation	Threshold	IHT rate above
Single — no home to descendants	£325,000	40%
Single — home to direct descendants	£500,000	40%
Couple — no home to descendants	£650,000	40%
Couple — home to direct descendants	£1,000,000	40%
Any estate with 10%+ to charity	As above	36%

Frequently asked questions

What is the inheritance tax threshold in 2026?▼

The standard nil-rate band is £325,000. An additional residence nil-rate band of £175,000 applies when a main home is left to direct descendants, giving a potential threshold of £500,000 per person, or £1 million for a married couple or civil partnership.

Do spouses pay inheritance tax on each other's estate?▼

No — transfers between UK-domiciled spouses and civil partners are completely exempt from inheritance tax. Any unused nil-rate band from the first death can also be transferred to the surviving spouse, potentially doubling their threshold.

What is the residence nil-rate band?▼

The RNRB is an additional £175,000 allowance (£350,000 for a couple) that applies when a main home is left to direct descendants such as children or grandchildren. It is tapered away for estates worth more than £2 million.

When must inheritance tax be paid?▼

IHT must be paid to HMRC within 6 months of the date of death. Interest accrues after this date. For property, IHT can be paid in annual instalments over 10 years. Probate generally cannot be granted until at least some IHT is paid.

How does leaving money to charity reduce inheritance tax?▼

If you leave at least 10% of your net estate to a UK-registered charity, the IHT rate on the taxable remainder drops from 40% to 36%. This can make charitable bequests surprisingly tax-efficient for larger estates, as the reduced rate can partially offset the charity gift.