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.
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.