Free tool · 2026/27

Inheritance Tax Calculator

Estimate what your estate would owe in inheritance tax — and see how much of it could be reduced with the right planning while there is still time to act.

Property, savings, investments, business, possessions
Estimated inheritance tax
£280,000
effective rate 23.3% of the estate
Net estate£1,200,000
Tax-free allowances£500,000
Taxable at 40%£700,000
How much of this could be planned away? →

Indicative 2026/27 estimate. Ignores lifetime gifts, business/agricultural relief and spouse exemptions. A tax adviser confirms your position.

How inheritance tax is worked out

Inheritance tax is charged at 40% on the value of an estate above the available allowances. Everyone has a £325,000 nil-rate band, and a further £175,000 residence nil-rate band where a main home passes to children or grandchildren. A surviving spouse can inherit the unused allowances, so a married couple can often pass on up to £1 million tax-free.

The bands are frozen until April 2031, so as property and investments grow, more estates are dragged into the charge each year — and the residence band itself is withdrawn once an estate tops £2 million. With planning — gifting, trusts, life cover written in trust, business and agricultural relief — much of the liability can often be reduced or removed.

This is an indicative figure. Property Tax Optimisers models your full estate and the options to pass on more of it.

Selling a business? →Run the full health check →