Inheritance Tax Calculator

Inheritance Tax Calculator

The Inheritance Tax Calculator gives you an estimate of whether your estate could face Inheritance Tax, and how much. Enter your total estate value and any debts or liabilities, and the calculator works out your net estate, your available tax-free allowance, and the amount that could be subject to Inheritance Tax.

An advanced mode lets you enter a charitable donation left in your Will, so you can see how it affects your estate's tax position.

This tool provides an estimate only and does not constitute financial or tax advice. Inheritance Tax calculations can be complex and depend on individual circumstances, so you should consult a qualified tax adviser or solicitor for advice specific to your situation.

What is Inheritance Tax?

Inheritance Tax is a tax on the estate, the property, money and possessions, of someone who has died. The standard rate is 40%, charged on the value of the estate above the tax-free threshold.

There is normally no Inheritance Tax to pay if the estate is below £325,000 (the nil-rate band), or if everything above the threshold is left to a spouse, civil partner, charity or community amateur sports club.

If the home is left to children (including adopted, foster or stepchildren) or grandchildren, an additional residence nil-rate band of up to £175,000 may apply, bringing the combined threshold up to £500,000. This additional band is only available when the estate is worth less than £2 million.

The reduced rate for charitable giving

If at least 10% of the net estate (the part subject to Inheritance Tax, after deducting the nil-rate band and any exemptions) is left to a qualifying charity in a Will, the rate of Inheritance Tax on the remaining taxable estate may be reduced from 40% to 36%.

This means a charitable donation in your Will can serve a dual purpose: it supports a cause you care about, and it may reduce the overall tax liability on your estate. In many cases, the combination of the donation and the lower tax rate means your beneficiaries may receive more than they would without the donation.

How it connects to the rest of adeus

When you create a Will with adeus, you can include charitable donations as part of your estate planning. The calculator lets you see how a charitable gift could affect your estate's tax position before deciding, and links through to Research Charitable Giving to help you choose a cause.

Source

Figures are based on current UK tax rules published on GOV.UK (gov.uk/inheritance-tax) and are correct as of July 2026. Thresholds are frozen at these levels through the 2027 to 2028 tax year. Individual circumstances vary, and this tool is for illustrative purposes only.