UK Inheritance Tax calculator 2026/27
A step-by-step estimate of your family's inheritance tax position — on your own, or as a couple looking at the whole second-death picture. It applies both nil rate bands, the residence allowance, spouse and charity exemptions, gifts within the last seven years and the post-April 2026 business and agricultural relief rules.
What would inheritance tax cost your family?
A step-by-step estimate of your estate's IHT position — on your own, or as a couple looking at the whole picture. Rough values are fine; you can refine later.
Takes about 5 minutes · Nothing you enter is stored
For guidance only — not financial or tax advice. Based on 2026/27 rules for England, Wales and Northern Ireland.
Who this calculator is for
Homeowners and couples in the North East (and across England, Wales and Northern Ireland) who want a clear-headed view of what IHT might cost their family — including anyone with business or AIM assets affected by the 2026 relief changes, and anyone thinking about gifting, charity legacies or how their wills are structured.
The 2026/27 rules it uses
- Nil rate band of £325,000 per person, transferable between spouses and civil partners.
- Residence nil rate band of £175,000 where a home passes to direct descendants, tapered £1 for every £2 above a £2 million estate.
- Standard IHT rate of 40%, reduced to 36% if at least 10% of the net estate passes to charity.
- Gifts within 7 years brought back into the estate, with taper relief on the tax between 3 and 7 years.
- Business and agricultural relief (post-April 2026): 100% on the first £1 million of qualifying assets, 50% above; AIM shares limited to 50%.
- Unused pensions expected to fall inside the estate from April 2027 — toggleable in the assets step.
Frequently asked questions
Should I run the numbers on my own or as a couple?
For most couples the second-death position is the more useful number — that's when the real bill usually lands. The calculator's "as a couple" basis assumes everything passes tax-free between you first, then applies both sets of allowances.
What changed for business assets in April 2026?
The first £1 million of qualifying trading business and agricultural assets still get 100% relief; anything above that gets 50%. Crucially the £1 million allowance is per person and can't be transferred between spouses — so it's worth reviewing wills if business assets are worth more than that.
Are pensions included in the estate?
Most unused defined contribution pensions sit outside the estate today, but they are expected to count towards IHT from April 2027. Use the toggle in the assets step to see both positions.
Educational estimate, not tax or legal advice. IHT depends on personal circumstances and the way your wills are drafted — please seek professional advice before acting.