How it works

This simplified estimate adds the modeled allowances, subtracts them from the entered net estate and applies the selected rate. It does not determine eligibility or replace an HMRC calculation.

1. Nil-rate band

The 2026/27 nil-rate band is £325,000. HMRC's current table keeps that amount through 5 April 2031.

2. Residence nil-rate band

A residence nil-rate band of up to £175,000 may apply when a qualifying home passes to direct descendants. The engine caps it at the entered qualifying home value and reduces it by £1 for every £2 the estate exceeds £2 million. A full single-person band reaches zero at £2.35m.

3. Spouse transfer

A survivor may claim the unused percentage of a late spouse or civil partner's bands. The toggle assumes 100% was unused and claimable; it does not determine eligibility or complete the required claim. With all conditions met, the combined maximum can reach £1 million.

4. The rate

The standard rate is normally 40%. The optional 36% view is only a sensitivity: the statutory charity test uses a baseline amount this form does not calculate, and the form does not deduct a charitable gift. Finance Act 2026 provides for most unused pension funds and death benefits to enter estates from 6 April 2027, subject to exclusions and further administration guidance; this 2026/27 calculator does not model that future rule.

A free, independent educational tool for UK Inheritance Tax (2026/27). It does not determine eligibility or model lifetime gifts, trusts, exemptions, Agricultural or Business Relief, charity-baseline calculations, or the future pension rule. It is not tax or legal advice — check GOV.UK or a qualified adviser.

Sources: GOV.UK — Inheritance Tax · GOV.UK — Passing on a home (RNRB) · HMRC — current IHT thresholds · HMRC — reduced-rate calculator · GOV.UK — IHT on pensions technical note · HMRC — Agricultural and Business Relief