UK inheritance tax, made clearer
Understand the exposure before you plan the response.
General education, not personal financial, legal or tax advice.
Independent educational guidance on inheritance tax, gifts, property and the April 2027 pension changes—written for people who want clarity without a sales pitch.
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A useful starting point
- £325,000
- standard nil-rate band
- £175,000
- maximum residence nil-rate band per person, where conditions are met
- 40%
- standard rate on the taxable part of an estate
- 6 April 2027
- most unused pension funds and death benefits enter estates for IHT
Thresholds and reliefs are conditional. Estates above £2 million can lose residence nil-rate band.
Start with the question you actually have
Practical guides, organised by decision
Inheritance tax is rarely one isolated calculation. The useful picture brings together ownership, family, gifts, pensions, property and timing.
What are the current thresholds?
See the £325,000 nil-rate band, residence allowance, taper and transferable bands.
Read the guide → 02How do pensions change in 2027?
Understand which pension values may enter the estate and why nominations still matter.
Read the guide → 03Do gifts really fall away after seven years?
Learn how exemptions, ordering, taper relief and gifts with reservation interact.
Read the guide → 04Will the family home qualify?
Work through direct descendants, qualifying homes, downsizing and the £2 million taper.
Read the guide → 05What changed for business and farm assets?
Review the £2.5 million combined 100% relief allowance introduced in April 2026.
Read the guide → 06Are overseas assets in scope?
See how the long-term UK residence test replaced the former domicile basis.
Read the guide →A calmer way to begin
Three steps from uncertainty to a useful brief
- 1
Map the estate
List property, investments, cash, pensions, debts, gifts and ownership.
- 2
Test the allowances
Check family status, home destination, transferred bands and possible reliefs.
- 3
Direct the question
Take regulated planning to an adviser, legal drafting to a solicitor and complex tax to a tax adviser.
Founded by Steven Calvert
UK financial-services experience, without pretending this site is an advice firm.
Steven has around 15 years of experience across the UK IFA market, including technical planning, paraplanning and compliance work. He holds the CII Diploma in Regulated Financial Planning and AF5, and is studying toward AF6.
About Steven and the editorial approach →Know when to bring in help
Turn an estimate into the right conversation
A financial adviser can consider regulated planning. A solicitor can help with wills and trusts. A tax adviser can address complex tax positions. Inheritance Tax Doctor is not currently accepting or sharing consumer enquiries.
Direct answers
Frequently asked questions
What is the standard UK Inheritance Tax rate?
The standard rate is 40% on the taxable part of an estate after available exemptions, reliefs and nil-rate bands. A 36% rate can apply where at least 10% of the net estate is left to charity.
How much can pass free of Inheritance Tax?
The standard nil-rate band is £325,000. An additional residence nil-rate band of up to £175,000 per person may apply when a qualifying home passes to direct descendants, subject to conditions and tapering.
What happens to pensions for Inheritance Tax from April 2027?
From 6 April 2027, most unused pension funds and pension death benefits are due to be included in the estate for Inheritance Tax. The detailed position depends on the scheme and beneficiary circumstances.