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UK Inheritance Tax Calculator 2026

Estimate your inheritance tax liability using current HMRC thresholds. Includes the residence nil-rate band, taper relief, and the April 2027 pension changes.

Your assets

£

Estimated market value of your home

£

Bank accounts, ISAs, shares, bonds

£

Total pension fund value (included in IHT from April 2027)

£

Vehicles, jewellery, art, other valuables

£

Mortgage, loans, credit cards

£

Gifts over £3,000/year made in the last 7 years

Your situation

Qualifies for the residence nil-rate band (£175,000 extra tax-free allowance).

From April 2027, most pensions will count towards inheritance tax. Toggle this to see the impact.

Based on HMRC thresholds as of February 2026. Does not constitute financial or legal advice.

How inheritance tax works in the UK

Inheritance tax (IHT) is charged at 40% on the value of your estate above the nil-rate band. The standard nil-rate band is £325,000 per person, frozen until April 2030. If you leave your home to your children or grandchildren, you may also qualify for the residence nil-rate band of £175,000.

For married couples and civil partners, any unused nil-rate band transfers to the surviving spouse. This means a couple could potentially pass on up to £1 million tax-free.

The April 2027 pension changes

From April 2027, most pension funds will be included in your estate for IHT purposes. This is a significant change announced in the October 2024 Budget. Use the toggle in our calculator to see how this affects your estate.

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