Inheritance Tax Calculator (England & Wales)
Free inheritance tax (IHT) estimate for England & Wales based on common assumptions.
View breakdown
Assumptions used for this estimate
• England & Wales only. Simplified inheritance tax estimate.
• Standard allowance: £325,000. Residence allowance: £175,000 (if eligible).
• "Transferable allowances" doubles these amounts.
• Does not include gifts (7-year rule), trusts, or business/agricultural relief.
How inheritance tax works
Inheritance tax (IHT) is charged at 40% on the part of an estate above certain allowances. The actual amount depends on who inherits, the type of assets, and various reliefs.
What this calculator covers
- • Standard nil-rate band
- • Residence nil-rate band
- • Spouse/civil partner exemption
- • Charity gift deduction
What it doesn't cover
- • Gifts made in last 7 years
- • Trusts and complex planning
- • Business/agricultural relief
- • Allowance tapering (estates over £2m)
Frequently asked questions
Is this calculator accurate?
It's a simplified estimate for common situations in England & Wales. Many factors can change the result, so treat it as a guide.
Does leaving everything to my spouse avoid IHT?
Often yes. The spouse/civil partner exemption means no IHT is usually due at that point, though tax may apply when they pass it on.
How does my home affect inheritance tax?
Leaving your main home to direct descendants (children, grandchildren) can add up to £175,000 to your allowance.
Can making a will reduce inheritance tax?
A will helps you plan who inherits and make your intentions clear. Tax outcomes depend on allowances, exemptions, gifts, and reliefs.