SimpleLPAFree UK Inheritance Tax Calculator 2026/27
Find out how much inheritance tax (IHT) you'll pay with our simple UK calculator. See how inflation, marriage, and charitable giving affect your estate.
Asset Information
Your Circumstances
Leaving 10%+ to charity cuts your tax rate from 40% to 36%
Insurance & Pension
Pensions are usually exempt from IHT, shown for your reference only
See your Inheritance Tax in seconds
Fill in your details on the left and we'll estimate your bill instantly, based on 2026/27 HMRC rules, with no sign-up.
Enter your assets
Home, savings, pension and more
Tick your circumstances
Marriage, children, charitable gifts
See your result
Your tax, allowances and what your family keeps
2026/27 tax-free allowances
Inheritance Tax (IHT) is a tax on the estate (the property, money, and possessions) of someone who has died. In England & Wales, the rules are specific:
Nil Rate Band: The first £325,000 of your estate is tax-free.
Residence Nil Rate Band: An extra £175,000 allowance applies if you leave your main home to children or grandchildren.
Spousal Exemption: Assets passed to a spouse or civil partner are usually tax-free.
Important: Tax planning is only one part of the puzzle. To ensure your allowances are actually used correctly, you must have a valid Will. Without one, the Rules of Intestacy decide who gets what, which can lead to higher tax bills and family disputes. You can make a legally binding Will online starting from just £10.
Furthermore, while IHT concerns death, asset protection during your lifetime is equally vital. If you lose mental capacity due to illness or injury, your assets (including those you plan to pass on) can be frozen by the bank. A Lasting Power of Attorney (LPA) is the only way to prevent this and avoid costly court fees.
Inheritance Tax Calculator: FAQs
For the 2026/27 tax year, the standard tax-free allowance (Nil Rate Band) is £325,000 per person. Any value above this is typically taxed at 40%, unless you qualify for additional reliefs like the Residence Nil Rate Band or leave money to charity.
If you leave your main home to your direct descendants (children or grandchildren), you get an additional allowance of £175,000. This means a married couple could potentially pass on up to £1 million tax-free (£325k + £175k each).
No. Transfers between spouses or civil partners are usually tax-free. Additionally, if your spouse didn't use their allowance when they died, the unused percentage can be transferred to you, potentially doubling your tax-free threshold.
It depends on the total value of your estate and which allowances you qualify for. Use our free UK inheritance tax calculator above to get an instant estimate. Just enter your assets, tick your circumstances, and we'll do the maths for you.
Yes, completely free. No sign-up, no email required. Our simple UK inheritance tax calculator gives you an instant estimate based on current 2026/27 HMRC rates and allowances. Use it as many times as you like.
Currently, most pensions pass outside your estate and are not counted for IHT purposes. However, from April 2027 the government plans to bring unused pension funds into the scope of IHT. Use the 'Apply 2027 Pension Changes' toggle in our calculator to see how this rule change could affect your tax bill.
Yes — the UK government has confirmed that from April 2027, unused pension pots will be included in your estate for IHT purposes. This means your pension could push your estate over the tax-free threshold. Use our 'Apply 2027 Pension Changes' toggle above to model the impact, and consider planning ahead with a Will.
Yes, unless the policy is written in trust. If your life insurance is paid into a trust, the payout goes directly to your beneficiaries and is excluded from your estate for IHT purposes. This is one of the simplest ways to reduce your inheritance tax bill.
SimpleLPA is a legal technology provider. This tool is for estimation only and does not constitute regulated financial or legal advice.
Based on HMRC rules for the 2026/2027 tax year.