🇬🇧 UK Inheritance Tax (IHT) Calculator 2026/27
💡 UK IHT Planning Tips 2026
Nil Rate Band — £325,000
Every UK individual has a £325,000 nil rate band (NRB) — the amount that can be passed on tax-free. This has been frozen until at least 2030, meaning more estates are being pulled into IHT as property values rise.
Residence Nil Rate Band — £175,000
An additional £175,000 residence nil rate band (RNRB) applies when a main residence is left to direct descendants (children, grandchildren). This gives a potential total allowance of £500,000 per person or £1,000,000 for a married couple.
Annual Gift Allowance
You can give away £3,000 per year completely free of IHT. Larger gifts are usually exempt if you survive 7 years after making them (Potentially Exempt Transfers). Regular gifts from surplus income can also be IHT-free.
Spouse Exemption
Transfers between UK-domiciled spouses or civil partners are completely IHT-free. Unused NRB and RNRB can also be transferred to a surviving spouse, potentially doubling their allowances to £650,000 NRB + £350,000 RNRB = £1,000,000 total.