Inheritance tax calculator
Inheritance tax is charged at 40% above a nil-rate band of £325,000, plus up to £175,000 more when a home passes to direct descendants, under gov.uk's Inheritance Tax rules. This estimates the allowances, the taxable slice and the likely bill for an estate.
How much can you inherit tax-free?
The starting point is the nil-rate band of £325,000, which every estate can pass on tax-free, as set out on gov.uk's Inheritance Tax page. If the main home goes to children or grandchildren, a residence nil-rate band of up to £175,000 is added. That means a single person can leave up to £500,000 before anything is taxed. Whatever sits above the combined allowance is charged at 40%.
What is the residence nil-rate band?
It is the extra allowance of up to £175,000 that applies only when the main home passes to direct descendants, under gov.uk's guidance on passing on a home. The residence band tapers away once the estate is worth more than £2,000,000, losing £1 for every £2 above that line, so a very large estate can lose it entirely.
Is money left to a spouse taxed?
Anything left to a spouse or civil partner is fully exempt from inheritance tax. Their unused nil-rate band and residence band also transfer to the survivor, which is how many couples can shelter a combined estate of up to £1,000,000 tax-free.
How much inheritance tax on a £700,000 estate?
Consider a £700,000 estate that includes a home worth £350,000 left to the children. The nil-rate band of £325,000 and the full £175,000 residence band together shelter £500,000. That leaves £200,000 taxable at 40%, an estimated bill of £80,000. The heirs would receive an estimated £620,000. Had the same estate been left entirely to a spouse, the estimated bill would be nil.
Common questions
How much can you inherit tax-free?
Every estate has a nil-rate band of £325,000. When a home is left to children or grandchildren, a residence nil-rate band of up to £175,000 is added, giving a single person up to £500,000 before any tax. Anything above the combined band is taxed at 40%.
What is the residence nil-rate band?
It is an extra allowance of up to £175,000 that applies only when your main home passes to direct descendants, meaning children, stepchildren, grandchildren and so on. It is capped at the value of the home, and it tapers away by £1 for every £2 that the estate is worth above £2 million.
Is money left to a spouse taxed?
No. Anything left to a husband, wife or civil partner is exempt from inheritance tax, whatever the amount. On top of that, any unused nil-rate band and residence band pass to the surviving partner, so a couple can often leave up to £1 million between them before tax.
How much inheritance tax on a £700,000 estate?
If a £700,000 estate includes a home left to children, the allowances come to £500,000, leaving £200,000 taxed at 40%. That is a bill of about £80,000, an effective rate of 11.4%.
When is inheritance tax paid?
It is normally due within six months of the end of the month of death, and often has to be paid before probate is granted. Tax on a house or other property can be spread over ten yearly instalments. This tool gives a rough estimate only, not a probate figure.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.