How it works
Enter the net estate value, say whether it qualifies for the residence nil-rate band (main home left to direct descendants), and whether 10% or more goes to charity. We apply the 2026/27 bands and rates in your browser.
In detail
Inheritance Tax (IHT) is charged at 40% on the value of an estate above the available nil-rate bands (or 36% if 10% or more of the estate is left to charity).
2026/27 nil-rate bands
| Band | Amount |
|---|---|
| Nil-rate band (NRB) | £325,000 |
| Residence nil-rate band (RNRB) | £175,000 |
| Standard rate | 40% |
| Reduced rate (10%+ to charity) | 36% |
The RNRB applies when a home is left to children or grandchildren. It tapers away by £1 for every £2 that the estate exceeds £2,000,000, disappearing entirely at £2,350,000. Both bands are per person, so a married couple can often pass on up to £1,000,000 free of IHT. The NRB and RNRB are frozen at these levels until at least 2030. The authoritative source is GOV.UK — Inheritance Tax.
Worked example · 计算示例
Worked example: £500,000 estate
An estate is worth £500,000 with no residence nil-rate band available:
- Nil-rate band: first £325,000 is tax-free.
- Taxable estate: £500,000 − £325,000 = £175,000.
- IHT at 40%: £175,000 × 40% = £70,000.
- Leaving 10%+ to charity cuts the rate to 36%.
The residence nil-rate band (up to £175,000) can raise the tax-free threshold to £500,000 when passing a home to direct descendants.
计算示例：£500,000 遗产
某遗产价值 £500,000，未使用住所免税额：
- 零税率门槛：首 £325,000 免税。
- 应税遗产：£500,000 − £325,000 = £175,000。
- 遗产税 40%：£175,000 × 40% = £70,000。
- 若将 10% 以上遗赠慈善，税率降至 36%。
住所免税额（最高 £175,000）在将住房传给直系后代时，可将免税门槛提升至 £500,000。
FAQ
What is the IHT threshold in 2026/27?
The nil-rate band is £325,000, plus a £175,000 residence nil-rate band if the home is left to direct descendants — a potential £500,000 per person.
What rate is Inheritance Tax?
40% on the taxable estate, or 36% if 10% or more is left to charity.
How does the residence nil-rate band taper?
It reduces by £1 for every £2 the estate is over £2,000,000, reaching zero at £2,350,000.
Can a married couple avoid IHT?
Any unused nil-rate band passes to a surviving spouse or civil partner, so many couples can leave up to £1,000,000 without IHT.