This calculator will calculate the potential inheritance tax (IHT) liability on your estate, based on the current IHT rate, available nil rate band(s) and basic reliefs. It should never be seen as a substitute for proper and informed tax advice.
In general all your assets, cash and investments, including property and life policies that are not written into trust, will be added together. Trust interests you have may also have a bearing, as will some gifts made in your lifetime. To the extent that the total figure exceeds the available nil rate band(s) IHT at 40% will be payable from your estate.
IHT is not payable on assets that pass between spouses or civil partners, except if you are domiciled in any part of the UK and your spouse/civil partner is not. IHT is also not payable on any part of your estate that passes to UK registered charities (or certain political parties!) and some assets will benefit from their own agricultural or business property reliefs.
Liabilities that exist at the date of your death reduce the portion of your estate that is subject to IHT.
You may be entitled to an enhanced nil rate band (the transferable nil rate band) if you are the surviving spouse or civil partner and some or all of the estate of the first of you to die passed to you. Broadly the current nil rate band can at most be doubled if all of the estate of the first of you to die passed to you; it can be improved by whatever percentage of the nil rate band available when the first of you died went unused.
Visit the H M Revenue & Customs website, which sets out the historical IHT nil rate bands which may be of use in completing this calculator.
If you complete the following boxes you can see an estimation of your current IHT liability. However we recommend you take face to face advice on all aspects of your estate.
