Inheritance tax calculator
How it works
A person’s estate is the sum of their savings, investments, the market value of the house they own and their other assets.
Depending on the size of an estate, inheritance tax may be due when a person’s beneficiaries inherit. Everyone can leave up to £325,000 of their estate free from inheritance tax (IHT), provided this allowance hasn’t been used when making gifts, for example, or settling assets into trust.
There’s an additional allowance that may also be available – the residence nil-rate band (RNRB) of up to £175,000 per person.
Things to bear in mind
Inheritance tax can be a complicated topic and this calculator is intended to help you understand some of the key areas. It’s been prepared in good faith and is based on our understanding and interpretation of the current law.
Keep in mind that specific circumstances that are outside of the scope of this calculator may result in different levels of inheritance tax being due. Also bear in mind that legislation may change in the future.
Inheritance tax calculator results
Key risks
Capital is at risk
The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.
Tax relief can’t be guaranteed
Tax relief depends on the companies invested in maintaining their BR-qualifying status. Tax treatment depends on individual circumstances and tax rules could change in the future.
Volatility and liquidity
The shares of AIM-listed and unlisted companies could fall or rise in value more than shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
BR is assessed on a case-by-case basis
We cannot guarantee that the investments we make will qualify for BR in every case in the future. HMRC will only conduct a BR assessment after the death of an investor, to confirm whether the companies invested in qualify for BR at that time.
Notes and assumptions
This calculator does not take into account house-price growth over time or rising investment values. On this basis, you may expect your inheritance tax liability to increase over time.
This calculator is designed to be easy to use, and as such it cannot cater for detailed scenarios such as the RNRB available in the event of downsizing, how the £2 million tapering test applies where BR investment has been made, lifetime gift cumulation rules, or taper relief. It is intended to be a starting point when looking at your personal situation.
If you calculated multiple different scenarios and didn’t refresh the web page before starting each one, the results displayed above may not be correct.