How much can you inherit before paying inheritance tax in the UK?

Each person has a nil-rate band of £325,000 that passes free of inheritance tax. A further residence nil-rate band of up to £175,000 can apply when a main home is left to children or grandchildren. Married couples and civil partners can combine their allowances, so a surviving partner's estate can pass on up to £1,000,000 before any tax is due.

What is the nil-rate band?

The nil-rate band is the slice of an estate taxed at 0%. It is £325,000 per person and has been frozen at that level for several years. Anything above the available allowances is normally taxed at 40%.

Do you pay inheritance tax if everything is left to a spouse?

No. Anything left to a husband, wife or civil partner is exempt from inheritance tax, whatever the amount. Any allowance the first partner did not use can also transfer to the survivor, which is why a couple can pass on up to £1,000,000 between them.

What is the inheritance tax rate in the UK?

The standard rate is 40% on the value of the estate above the available allowances. It falls to 36% where at least 10% of the net estate is left to charity. The checker applies whichever rate fits the figures you enter.

Does leaving the home to children reduce inheritance tax?

It can. When a main home is left to direct descendants, such as children or grandchildren, an extra residence nil-rate band of up to £175,000 per person applies on top of the £325,000 nil-rate band. This residence allowance is gradually withdrawn for estates worth more than £2,000,000.

Inheritance tax checker

Will the estate owe inheritance tax?

A two-minute estimate from the values you already know. The result tells you what the executor owes HMRC, before allowances and exemptions are applied.

About the estate

Rough figures are fine. Every question has a "what does this mean?" link if you're unsure.

Estate value

A rough total of what the deceased owned, minus what they owed. The calculator works with round numbers, so estimate when you have to.

What counts as estate value?

Add up the market value of everything below, then subtract debts and any funeral costs.

Include

Property: home, any second homes, holiday lets, land
Money in current accounts, savings, ISAs, premium bonds
Investments: shares, unit trusts, bonds, fund holdings
Cars, jewellery, art, antiques, valuable belongings
Life insurance payouts that are NOT written in trust
Money owed to the person (loans, unpaid invoices)
Business interests and foreign property

Don't include

Pension pots and pension lump sums (separate IHT rules)
Life insurance written in trust (sits outside the estate)
Anything passing to a surviving spouse (handled by the question below)
Gifts given in the last 7 years (asked separately below)
Day-to-day belongings of no real resale value

Joint property: include the deceased's share (usually half) unless it passes automatically to a surviving spouse.

Date of death

The tax allowances change over the years, so the date sets which rates apply. Leave blank to use today's rates.

Did a husband, wife, or civil partner die before them?

When the first of a couple dies, any allowance they didn't use can be added to the second person's allowance. This can double the tax-exempt amount.

What does this actually mean?

Everyone gets a £325,000 nil-rate band: the first £325,000 of an estate is not taxed. Married couples and civil partners can pass anything to each other tax-exempt, so the first person to die usually uses none of their £325,000 allowance.

That unused amount transfers to the second person, giving them up to £650,000 of allowance instead of £325,000. The same doubling applies to the £175,000 residence allowance below. Answer Yes only if a spouse or civil partner has already died.

Is a main home being left to children or grandchildren?

This can unlock up to £175,000 of extra allowance on top of the standard £325,000. Only the main home counts, and only if it passes to direct descendants. The allowance shrinks on estates over £2,000,000 and disappears entirely on very large ones.

Who counts as a direct descendant?

Yes, these all count as direct descendants:

• Children, including adopted, fostered, and stepchildren
• Grandchildren and great-grandchildren
• The widow, widower, or civil partner of a child or grandchild who has already died (for example, a son's wife inheriting after the son passed away)

A current partner's children from a previous relationship do not count unless they have also been adopted or are stepchildren of the person who died.

No, the £175,000 doesn't apply if the home goes to siblings, nieces, nephews, friends, or anyone else. It also tapers away on estates over £2,000,000: £1 of allowance lost for every £2 above that, so it's gone entirely by the time an estate reaches around £2.35 million (or £2.7 million for a couple).

Enter an estate value to see the estimate.

You can change any answer at any time. The result updates as you type.

How the inheritance tax estimate works

Inheritance tax is charged on the part of an estate that sits above the available allowances. The checker adds up the estate, subtracts the allowances that apply, and works out the tax on whatever is left, normally at 40%. It uses the rates for the date of death you enter, so it also works for estates being settled from earlier years.

What allowances are included

The checker applies the allowances that affect most estates:

The nil-rate band of £325,000 per person, the slice taxed at 0%.
The residence nil-rate band of up to £175,000, available when a main home is left to children or grandchildren.
A late spouse's unused allowance, which can transfer to a surviving husband, wife or civil partner and lift the combined total to as much as £1,000,000.
The reduced 36% rate, applied automatically when at least 10% of the net estate is left to charity.

Above £2,000,000, the residence allowance is gradually withdrawn by £1 for every £2 the estate is over the limit.

What the checker does not cover

It gives a quick estimate, not a formal valuation or a tax return. A few situations need professional advice rather than a calculator:

Business, farm or agricultural assets, which may qualify for their own reliefs.
Trusts, foreign assets, or more complex ownership.
Taper relief on gifts made between three and seven years before death. Gifts are counted in full here, so the real bill could be lower.
The exact split where a late spouse used part of their own allowance. The checker assumes none of it was used, which is the common case.

The estimate also assumes the estate is passing to the next generation. Anything left directly to a husband, wife or civil partner is exempt from inheritance tax in its own right.

When to speak to a solicitor or tax adviser

It is worth taking professional advice when:

the estate is near or above £2,000,000, where the residence allowance starts to taper;
it includes a business, farm, or agricultural land;
there are trusts, overseas property, or large lifetime gifts;
or the estimate shows tax is likely to be due and you want to plan around it.

A solicitor or accountant can confirm the figure, claim every relief available, and handle the HMRC forms.

Worked examples

A simple estate. A single person leaves £320,000 and no property to children. It sits just under the £325,000 nil-rate band, so there is no inheritance tax to pay.
A married couple. On the first death everything passes to the surviving partner, free of tax. On the second death the survivor's estate can use both partners' allowances, up to £1,000,000 where a home passes to their children. An estate of £900,000 would fall under that and pay nothing.
A home left to children. A single person leaves £480,000, including a home that passes to their children. The £325,000 nil-rate band plus the £175,000 residence allowance gives £500,000 of cover, so the estate is just under the line.
An estate above £2m. Once an estate passes £2,000,000, the residence allowance tapers away by £1 for every £2 over. By £2,350,000 the full £175,000 residence allowance has gone, leaving only the standard nil-rate band.

Common questions

How much can you inherit before paying inheritance tax in the UK?: Each person has a nil-rate band of £325,000 that passes free of inheritance tax. A further residence nil-rate band of up to £175,000 can apply when a main home is left to children or grandchildren. Married couples and civil partners can combine their allowances, so a surviving partner's estate can pass on up to £1,000,000 before any tax is due.
What is the nil-rate band?: The nil-rate band is the slice of an estate taxed at 0%. It is £325,000 per person and has been frozen at that level for several years. Anything above the available allowances is normally taxed at 40%.
Do you pay inheritance tax if everything is left to a spouse?: No. Anything left to a husband, wife or civil partner is exempt from inheritance tax, whatever the amount. Any allowance the first partner did not use can also transfer to the survivor, which is why a couple can pass on up to £1,000,000 between them.
What is the inheritance tax rate in the UK?: The standard rate is 40% on the value of the estate above the available allowances. It falls to 36% where at least 10% of the net estate is left to charity. The checker applies whichever rate fits the figures you enter.
Does leaving the home to children reduce inheritance tax?: It can. When a main home is left to direct descendants, such as children or grandchildren, an extra residence nil-rate band of up to £175,000 per person applies on top of the £325,000 nil-rate band. This residence allowance is gradually withdrawn for estates worth more than £2,000,000.

This is an estimate based on the figures you enter and current HMRC rates. It is not tax advice. For anything other than a straightforward estate, confirm the position with a solicitor or tax adviser.