Inheritance Tax calculator
Our Inheritance Tax (IHT) calculator helps you to estimate whether your estate will incur Inheritance Tax and how much will need to be paid. The information is based on the IHT rates and allowances as at 1 October 2023.
Calculate your estate’s Inheritance Tax bill
Inheritance tax receipts hit a record monthly high in June 2023, and are on track to reach a record annual figure. In Spring of this year, HMRC revised their previous prediction for the number of estates that would incur Inheritance Tax in the years from 2021 to 2028. Their new prediction states they expect that up to 50,000 new estates will incur Inheritance Tax during this time.
In an environment where more estates are incurring Inheritance Tax, the thresholds are unchanged and property prices have been increasing, it is important to understand whether your estate will attract an Inheritance Tax liability.
To understand whether your estate will incur Inheritance Tax and the value of the Inheritance Tax payable, use our quick and easy-to-follow Inheritance Tax calculator below.
If you would like to understand more about Inheritance Tax, the thresholds, rates, allowances and available reliefs, you can read our Inheritance Tax FAQs.
Disclaimer
Our calculator tool is designed to provide a useful estimate only. It does not constitute nor replace the need to seek professional advice.
The exact amount of Inheritance Tax payable will depend on a large number of factors specific to your particular scenario. The important thing is to seek advice as soon as possible. The calculation process itself can be complex, so talk to your professional advisers about the steps you need to take.
Please also take note of the following conditions of the calculator:
- The object of the calculator is to estimate the Inheritance Tax liability in the event of an individual’s death, and not any other occasion where IHT may arise (such as for certain types of trust).
- It is also built on the assumption that the individual is UK domiciled at time of death and should include their worldwide assets. It is therefore not appropriate for non-UK domiciled citizens.
- It does not take into account certain reliefs from IHT such as Business Property Relief, as the conditions are complex and specific to each individual scenario, so advice should be sought if the relief can be claimed and impact on IHT position.
- The rate of IHT may change if a significant proportion of the estate is given to charity and the calculation may also differ if the individual’s assets will be covered by an exemption, such as being gifted to charity or a surviving spouse.
- The Residence Nil Rate Band is subject to conditions and may not be available and specific advice should be sought to confirm this.
If you would like to speak to someone about your specific scenario, then please get in contact with our team using the form below.
We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.
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