Inheritance tax (IHT) calculator

For financial advisers only

Complete this form to find out if your client(s) have a potential inheritance tax (IHT) liability, and how much it could be.

This is a simple calculator to help illustrate what a client's IHT liability could be. It doesn't take account of any gifts made in the previous seven years. Your client should take their own tax advice in relation to their IHT position.

For married couples and registered civil partnerships, any IHT liability might not occur until the second death, depending on the provisions of their wills and their respective domicile statuses. If you're using this calculator for a married couple or registered civil partnership where the IHT liability is going to arise on the second death, enter the value of the couple's combined wealth and liabilities.

This information is based on our understanding of current taxation law and HM Revenue & Customs (HMRC) practice, which may change. The value of any tax relief depends on the individual circumstances of the investor.

For example, savings in a bank/building society.

For example, stocks/shares/bonds/ISAs.

That's payable to your client's estate.

For example, from a relative.

Across all properties.

For example, credit cards/overdraft, hire purchase.

The deceased has to have owned the business property or asset for two years. Some examples of business property qualifying for 100% relief are:

an interest in an unincorporated business or partnership;
shares in an unlisted company, and
shares listed on the Alternative Investment Market.

Fifty per cent relief can be claimed on land, buildings, plant or machinery used primarily by a business or partnership that the deceased controlled.

This is a relief on the agricultural value (not necessarily the market value) of agricultural property. Agricultural property is broadly speaking farmland, woodland, farm buildings and certain farmhouses and cottages. The property must have been occupied by the owner for agricultural purposes for at least two years or occupied by someone other than the owner and used for agricultural purposes for at least seven years. The rate of relief is either 100% or 50%.

Read our factsheet for information on how to calculate how much your client qualifies for.

Find out the current residence nil-rate band.

Applies where the deceased leaves their residence or an interest in their residence to direct descendants. Where the deceased's estate exceeds £2 million, the residence nil-rate band will be reduced by £1 for every £2 of excess.

Any percentage of the basic nil-rate band that isn't used on a spouse's or registered civil partner's death can be claimed by the surviving spouse's personal representatives on their subsequent death.

Any residence nil-rate band that's unused on the first death can be claimed by the personal representatives of the surviving spouse's or registered civil partner's estate.

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IHT Inheritance tax (IHT) calculator

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