What is the standard UK Inheritance Tax rate?

The standard Inheritance Tax rate is 40%, charged only on the value of your net estate that exceeds your available tax-free thresholds.

What is the 7-year rule for gifts in the UK?

Gifts given to individuals more than 7 years before your death are 100% exempt from Inheritance Tax under Potentially Exempt Transfers (PET).

United KingdomUK Inheritance Tax (IHT 40% Rate)Finance & Salary

UK Inheritance Tax (IHT) & Residence Nil-Rate Band Calculator

Calculate HMRC 40% Inheritance Tax liability on estates above the standard Nil-Rate Band (£325,000) and Residence Nil-Rate Band (RNRB £175,000 for direct descendants), including 100% spousal transfer allowance (up to £1,000,000 combined exemption).

Wealth & Estates Taxes & Duties Inheritance & Succession

Calculator Inputs

Live Real-Time

Total Net Estate Value (Property + Savings + Investments) (£)

Quick select:

Marital Status & Spousal Allowance Transfer

Main Residence Passed to Direct Descendants (Children/Grandchildren)?

Calculated ResultUK Inheritance Tax (IHT 40% Rate)

Total HMRC Inheritance Tax (IHT 40%) Due

£100,000

Net After-Tax Estate Transferred to Beneficiaries

£650,000

Total Combined Tax-Free Allowance (£ NRB + RNRB)

£500,000

Detailed Calculation Breakdown

Gross Estate Value

£750,000

Total Tax-Free Allowance

£500,000

Inheritance Tax Due

£100,000

Net Inheritance

£650,000

Calculation Methodology

Total Tax-Free Allowance = Base NRB (£325k / £650k Married) + Residence NRB (£175k / £350k Married). Taxable Estate = max(0, Net Estate - Total Allowance). IHT Due = Taxable Estate * 40%.

Important Legal & Educational Disclaimer

The Residence Nil-Rate Band begins to taper by £1 for every £2 the estate exceeds £2,000,000. Gifts made more than 7 years before death are 100% exempt under the 7-year taper rule.

This calculator is designed for educational and informational purposes only based on public statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimations. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

Yes, by combining both £325,000 Nil-Rate Bands (£650,000) and both £175,000 Residence Nil-Rate Bands (£350,000), a married couple can pass on up to £1,000,000 tax-free to direct descendants.

Related Calculators

Recommended tools and calculators tailored to your current calculation

Explore all tools

United Kingdom

UK Inheritance Tax (IHT) & Residence Nil-Rate Band Calculator

Calculator Inputs

Detailed Calculation Breakdown

Calculation Methodology

Important Legal & Educational Disclaimer

Frequently Asked Questions

Related Calculators

UK Vehicle Excise Duty (VED Road Tax) & £40,000 Luxury Supplement Calculator

UK SIPP Pension Tax Relief & Government Top-Up Calculator

UK National Insurance (Class 1 NICs) Employee & Employer Calculator

UK Marriage Allowance Transfer & Tax Savings Calculator (£252/year)

UK High Income Child Benefit Charge (HICBC) Taper Calculator (£60k to £80k)

UK Stocks & Shares ISA £20,000 Allowance & Tax-Free Growth Calculator

UK PAYE Income Tax & Take-Home Pay Calculator (HMRC)

UK Dividend Tax & £500 Allowance Calculator (Director & Investor)