What is the inheritance tax threshold in 2026/27?

The nil rate band is £325,000. With the residence nil rate band (RNRB) of £175,000, a homeowner leaving property to direct descendants can pass on up to £500,000 free of IHT. Married couples can combine allowances for up to £1,000,000 tax-free.

What rate is inheritance tax charged at?

Inheritance tax is charged at 40% on the taxable estate — the value above the available nil rate bands.

Is there IHT on assets left to a spouse?

No. Assets passing to a UK-domiciled spouse or civil partner are completely exempt from inheritance tax. The unused nil rate band can also be transferred to the surviving spouse's estate.

2026/27 rates

Inheritance Tax Calculator

England and Wales · NRB £325k · RNRB £175k · 40% rate · updates instantly

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2026/27

Gross estate value

Assets passing to a spouse or civil partner?

Transferable nil rate band (TNRB)?

A deceased spouse's unused NRB can be transferred — adds another £325,000 allowance.

Residence nil rate band (RNRB)?

Applies when a home passes to direct descendants. Worth up to £175,000 (£350,000 with TNRB).

Residential property value

Estimate only. Gifts, trusts, business relief and charity deductions can all affect the result. Consult a solicitor for complex estates.

Estate passed on

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IHT due

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Allowances

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Effective rate

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Nil rate band £325,000

Residence NRB —

Passed on —

IHT at 40% —

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