UK inheritance tax, made clearer
Understand your potential Inheritance Tax liability
General education, not personal financial, legal or tax advice.
Clear information on Inheritance Tax, gifts, property and the April 2027 pension changes, with an indicative calculator and links to the underlying rules and official sources.
Your figures stay private. The calculator runs in your browser. The financial values you enter are not submitted to Inheritance Tax Doctor or stored as part of your calculation.
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 have
Guides to the main Inheritance Tax questions
Inheritance Tax usually depends on several things at once: what you own, who you leave it to, gifts you have made, pensions, property and timing. The guides below deal with each of the main areas separately.
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 practical starting point
Three things to check first
- 1
Work out what is in the estate
List property, investments, cash, pensions, debts, significant gifts and how each asset is owned.
- 2
Check which allowances may apply
Consider family circumstances, who will inherit the home, transferable bands and any relevant reliefs.
- 3
Speak to the right professional where necessary
Use a financial adviser for regulated planning, a solicitor for legal drafting and a tax adviser for complex tax matters.
Founded by Steven Calvert
Financial-services experience behind the site
Steven has around 15 years of experience in UK financial services across paraplanning, technical pension work, adviser support and compliance file checking. He holds the CII Diploma in Regulated Financial Planning together with AF5, CF6 and R07, and is studying towards AF6.
About Steven and the editorial approach →Knowing when advice may help
When professional advice may help
Different questions need different specialists. A financial adviser can deal with regulated financial planning, a solicitor with matters such as wills and trusts, and a tax adviser with more complex tax issues. 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.