Inheritance Tax Saving Calculator — Calculate and Save on Inheritance Tax

Inheritance Tax Saving Calculator

Calculate your potential inheritance tax liability and explore ways to reduce it. Plan ahead to maximize what you pass on to your beneficiaries.

Step 1: Estate Details

£300,000
£200,000

Understanding Estate Value

Your estate includes everything you own: property, savings, investments, possessions, and any other assets. Debts and liabilities are subtracted from this total.

Step 2: Tax Details

£325,000
£175,000
£0
£0

About Inheritance Tax

Inheritance tax is paid on an estate when someone dies. The standard rate is 40% on anything above the tax-free threshold. Proper planning can significantly reduce this liability.

Inheritance Tax Calculation Results

Summary
Saving Strategies
Tax Breakdown

Estimated Inheritance Tax Liability

£70,000
Tax Rate: 40% on taxable estate
Taxable Estate
£175,000
Effective Tax Rate
14%
Beneficiaries Receive
£430,000
Potential Savings
£35,000

Tax Saving Strategies Comparison

Strategy Tax Liability Beneficiaries Receive Savings Complexity

Inheritance Tax Breakdown

Inheritance Tax Formula

Tax = (Estate Value – Allowances) × 40%

Inheritance tax is calculated by subtracting all applicable allowances (nil-rate band, residence nil-rate band, gifts, charity donations) from the total estate value, then applying the 40% tax rate to the remaining amount.

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