UK Inheritance Tax Calculator 2025/26 — IHT

Calculate UK Inheritance Tax (IHT) 2025/26. Standard Nil Rate Band: £325,000. Residence NRB: £175,000. IHT rate: 40% on taxable estate.

Estate Details

All assets minus debts and funeral expenses
Spouse died before and had unused NRB
Required for RNRB (£175,000)
Children or grandchildren inheriting the home

IHT Calculation 2025/26

Estate value£800,000
Nil Rate Band (NRB)- £650,000
Residence NRB (RNRB)- £350,000
Total nil-rate threshold£1,000,000
Taxable estate£0
Estate below nil-rate threshold — No IHT payable.

Come utilizzare UK Inheritance Tax Calculator 2025/26 — IHT NRB RNRB

Enter the total estate value

Include all assets: property, savings, investments, business interests, life insurance (if in trust). Subtract any outstanding debts and funeral expenses.

Check spouse/civil partner NRB transfer

If your spouse or civil partner died before you and did not use their full Nil Rate Band, their unused NRB (up to £325,000) can be transferred to your estate, doubling it to £650,000.

Residence Nil Rate Band (RNRB)

The RNRB (£175,000 per person) applies when a main residence is left to direct descendants (children, grandchildren). With spouse NRB transfer it can be up to £350,000.

Review IHT at 40%

IHT is charged at 40% on assets above the combined nil rate bands. The effective rate depends on the total estate size relative to available exemptions.

Suggerimenti

  • Gifts made more than 7 years before death are usually exempt from IHT (potentially exempt transfers, PETs).
  • Life insurance policies written in trust are not part of the estate and can help cover IHT liabilities.
  • Business Property Relief (BPR) and Agricultural Property Relief (APR) can reduce IHT to 0% on qualifying assets.
  • Donating 10% of the estate to charity reduces the IHT rate from 40% to 36% on the taxable portion.

Domande frequenti

What is Inheritance Tax (IHT) in the UK?

UK IHT is a tax on the estate (property, money and possessions) of someone who has died. The standard rate is 40% on the portion above the nil rate band. In 2025/26, the threshold is £325,000 per person.

What is the Residence Nil Rate Band (RNRB)?

The RNRB is an additional £175,000 allowance (2025/26) when a residence is passed to direct descendants. It phases out for estates over £2 million (tapered by £1 for every £2 above £2M).

Is IHT payable by spouses?

No. Transfers between UK-domiciled spouses and civil partners are entirely IHT-exempt. However, assets left to non-UK domiciled spouses have a £325,000 limit.

When is IHT due?

IHT is usually due within 6 months of death. Interest accrues after this date. Property-related IHT can be paid in installments over 10 years.