Tools / Inheritance tax calculator
A rough estimate using the nil rate bands. Inheritance tax turns on details a calculator cannot see, so treat this as a starting point for a conversation with a solicitor, not as an answer.
Every estate has a nil rate band of £325,000. On top of that, an estate can claim a residence nil rate band of £175,000, but only where a home passes to direct descendants: children, grandchildren, step-children, adopted and foster children. It does not apply to nieces, nephews, siblings, or friends. The residence band is also capped at the value of the home itself.
Allowances unused on the first death transfer to the survivor, so a married couple leaving a home to their children can have £325,000 plus £325,000 plus £175,000 plus £175,000, which is £1 million. That figure assumes the first spouse used none of their allowance, which is often not the case.
The residence band tapers away on larger estates. Above £2 million it falls by £1 for every £2 of excess, so it is fully gone by about £2.35 million. The £2 million test is applied before business and agricultural reliefs, which catches out farmers and business owners in particular.
Leaving at least 10% of the net estate to charity cuts the rate on the rest from 40% to 36%. The 10% test is measured against the estate after the nil rate band and exemptions, not against the gross estate, which is a common mistake.
£325,000 as the nil rate band, plus up to £175,000 more as the residence nil rate band where a home passes to direct descendants. A married couple who both leave everything to each other and then to their children can have up to £1 million between them.
Children, grandchildren and remoter descendants, including step-children, adopted children and foster children, and their spouses in some cases. Nieces, nephews, siblings and friends do not qualify, so the residence band does not apply where the home passes to them.
No. It requires a home passing to direct descendants, it is capped at the value of that home, and it tapers away by £1 for every £2 the estate exceeds £2 million, disappearing entirely at about £2.35 million.
Gifts in the seven years before death can use up the nil rate band before the estate does, and taper relief reduces the tax on the gift itself rather than on the estate. This calculator does not model gifts, so its figure will be wrong if any were made.
Last verified 16 September 2026. This is an estimate from a calculator, not tax advice, and GlideOps is not a firm of accountants. It uses 2026/27 rates for England and Northern Ireland and cannot see your full circumstances. Check anything that matters against HMRC guidance or an accountant before you file or commit money.