Inheritance Tax
Inheritance Tax calculator — including pensions from April 2027.
Inheritance Tax
£156,000
Taxable estate £390,000 at 40%.
- Nil-rate band
- £325,000
- Residence nil-rate band
- £175,000
- Business / farm relief
- £0
Where the estate goes
How the bill grows with the estate
Same home, pensions, reliefs and gifts; only the other assets change.
Pensions add £60,000 to this bill from April 2027. It is worth reviewing nominations and lifetime gifting before then.
Rates and rules from Inheritance Tax (HM Revenue & Customs). Found a discrepancy? Report a calculator issue with the tax year and figures you used, or read how our calculators work.
Related calculators
Keep planning.
Capital Gains
Capital Gains Tax Calculator
Residential vs other assets, £3,000 annual exempt amount, BADR included.
Pension
Pension Tax Relief Calculator
Basic/higher/additional rate relief, annual allowance, carry-forward note. Scottish rates supported.
Gift Aid
Gift Aid Calculator
25% to the charity, plus your higher-rate relief.
Property
Rental Income Tax Calculator
Section 24 mortgage interest credit, allowable expenses, higher-rate landlord impact.
Expert help
Turn your estimate into the right tax decision.
A calculator can model the numbers. Our accountants can check the assumptions, explain the options and handle the return or payroll work for you.
Ask an accountantQuestions
Frequently asked questions.
Is Inheritance Tax different in Scotland?
No. Inheritance Tax is a UK-wide tax with the same rates and bands in Scotland, although Scottish succession law (legal rights for children and spouses) affects who inherits.
What changes for pensions in April 2027?
From 6 April 2027 most unused pension funds and death benefits will be included in the value of an estate for Inheritance Tax. Until then they usually sit outside it.
What happens to business and farm relief?
From 6 April 2026, 100% relief applies only up to a fixed allowance of qualifying business and agricultural property per person, with 50% relief above it. The allowance was announced at £1 million and raised to £2.5 million in December 2025.
How can I reduce Inheritance Tax?
Common routes include lifetime gifts (which leave the estate after seven years), regular gifts out of surplus income, leaving 10% to charity to cut the rate to 36%, and reviewing pension nominations before April 2027.
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