Inheritance Tax Rate Calculator — Calculate IHT Liability & Rates

Inheritance Tax Rate Calculator

Calculate inheritance tax liability, rates, and exemptions for UK estates. Determine tax due based on estate value, beneficiaries, and available allowances.

Step 1: Estate Details

Understanding Nil Rate Band

The standard Inheritance Tax threshold is £325,000. Estates below this value pay no tax. The Residence Nil Rate Band adds an extra £175,000 when leaving a home to direct descendants.

Step 2: Allowances & Beneficiaries

About Inheritance Tax Rates

The standard Inheritance Tax rate is 40% on anything above the threshold. This reduces to 36% if you leave at least 10% of your estate to charity. Spouses and civil partners can transfer unused allowances.

Inheritance Tax Results

Summary
Rate Comparison
Breakdown

Inheritance Tax Due

£70,000
40% rate on taxable estate of £175,000
Tax Rate
40%
Taxable Estate
£175,000
Total Allowances
£325,000
Net to Beneficiaries
£380,000

Inheritance Tax Rate Comparison

Beneficiary Type Tax Rate Nil Rate Band Additional Relief

Tax Calculation Breakdown

Tax Calculation Formula

Tax Due = (Estate Value – Allowances) × Tax Rate

Allowances include Nil Rate Band (£325,000), Residence Nil Rate Band (£175,000), and any other reliefs. The tax rate is typically 40%, reduced to 36% with charitable giving.

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