What is the UK inheritance tax rate for 2026/27?

The UK inheritance tax rate is 40% on estates above the nil-rate band of £325,000. The rate reduces to 36% if 10% or more of the estate is left to charity.

What is the residence nil-rate band?

The residence nil-rate band is an additional £175,000 allowance available when you leave your main residence to direct descendants (children or grandchildren).

Who pays inheritance tax?

Inheritance tax is typically paid by the executors of the estate from the estate's assets before distribution to beneficiaries. Payment is usually due within 6 months of death.

Terms of Service

Last updated: January 23, 2024

Important Disclaimer

This service provides estimates for guidance purposes only. Inheritance tax calculations can be complex and individual circumstances may significantly affect the final tax liability. Professional advice is recommended for all estate planning decisions.

1. Acceptance of Terms

By accessing and using IHT Calculator UK ("the Service"), you accept and agree to be bound by the terms and provision of this agreement.

These terms apply to all visitors and users of the Service
If you do not agree to these terms, please do not use the Service
We reserve the right to update these terms at any time
Continued use of the Service constitutes acceptance of revised terms

2. Description of Service

What We Provide

Free inheritance tax calculation tools for UK residents
Educational content about UK inheritance tax
General guidance on estate planning concepts
Current inheritance tax rates and thresholds

What We Do Not Provide

Personalized financial or legal advice
Professional tax planning services
Guaranteed accuracy for complex estates
Legal or regulatory compliance advice

3. Use License

Permitted Use

Personal, non-commercial use of the calculator and content
Educational purposes and estate planning research
Sharing results with professional advisors

Prohibited Use

Commercial use without express written permission
Reproduction or distribution of our content
Reverse engineering or copying our calculator logic
Using the service for illegal or unauthorized purposes
Attempting to interfere with the service's operation

4. Accuracy and Limitations

Calculator Accuracy

While we strive for accuracy, our calculator has limitations:

Based on standard inheritance tax rules and may not account for all exemptions
Cannot factor in complex trust structures or specialized reliefs
May not reflect the most recent legislative changes
Results are estimates and not definitive tax calculations

Professional Advice Required

You should seek professional advice for:

Estates with complex assets or structures
International assets or non-UK domicile issues
Business property or agricultural relief claims
Trust planning and administration
Any estate planning decisions

5. Disclaimer of Warranties

The information and tools provided on this website are offered "as is" without any warranty of any kind.

We make no representations about the accuracy or completeness of the information
We do not warrant that the service will be uninterrupted or error-free
We disclaim all warranties, express or implied, including merchantability and fitness for purpose
Your use of the service is at your own risk

6. Limitation of Liability

To the fullest extent permitted by law, IHT Calculator UK shall not be liable for any damages arising from:

Use or inability to use the service
Inaccurate calculations or estimates provided
Reliance on information provided by the service
Any decisions made based on the calculator results
Loss of data or interruption of service
Any indirect, consequential, or punitive damages

Our total liability shall not exceed £100 in any case.

7. User Conduct

You agree not to use the service:

For any unlawful purpose or to solicit unlawful activity
To violate any international, federal, provincial, or state regulations, rules, or laws
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8. Privacy

Your privacy is important to us. Please review our Privacy Policy, which also governs your use of the service, to understand our practices regarding the collection and use of your information.

Important: All inheritance tax calculations are performed locally in your browser. We do not collect, store, or transmit your financial information.

9. Governing Law

These terms and conditions are governed by and construed in accordance with the laws of England and Wales.

Any disputes shall be subject to the exclusive jurisdiction of the English courts
If any provision is found to be invalid, the remainder shall remain in effect
These terms constitute the entire agreement between you and IHT Calculator UK

10. Changes to Terms

We reserve the right to modify these terms at any time:

Updated terms will be posted on this page with a new "last updated" date
Material changes will be highlighted or announced on the website
Your continued use of the service constitutes acceptance of updated terms
If you disagree with changes, please discontinue use of the service

11. Contact Information

If you have any questions about these Terms of Service, please contact us:

Contact Form: Use our contact form

Effective Date

These Terms of Service are effective as of January 23, 2024 and will remain in effect except with respect to any changes in their provisions in the future, which will be in effect immediately after being posted on this page.