What is the residence nil-rate band?

It's an extra allowance (currently £175,000) available when you leave your main home to children or grandchildren. It tapers away for estates worth over £2 million, reducing by £1 for every £2 above that threshold.

What is the residence nil-rate band?

It's an extra allowance (currently £175,000) available when you leave your main home to children or grandchildren. It tapers away for estates worth over £2 million, reducing by £1 for every £2 above that threshold.

Inheritance tax calculator

Estimate your inheritance tax bill

Q: How much can you inherit before paying inheritance tax?

Each person has a nil-rate band of £325,000. Leaving your main home to direct descendants can add a residence nil-rate band of £175,000. Married couples and civil partners can combine unused allowances, so a couple can often pass on up to £1 million before IHT applies.

Q: Does this calculator account for gifts and trusts?

No — to keep it simple it estimates IHT from your estate value and the main allowances only. Lifetime gifts, trusts, business and agricultural relief, and pensions can all change the figure, so treat the result as a starting point and take advice.

Enter your estate value, your main home, and any debts to estimate the inheritance tax (IHT) your estate might face. The calculator applies the current nil-rate band and residence nil-rate band, and can double the allowances for married couples and civil partners.

Total estate value

Property, savings, investments, possessions — everything you own.Of which, main home

Used to work out the residence nil-rate band.Debts / liabilities

Married, in a civil partnership, or widowed (allowances can transfer)Main home left to children or grandchildrenLeaving 10%+ of the estate to charity (reduced 36% rate)

Estimated inheritance tax

£0

Net estate£0

Nil-rate band− £325,000

Residence nil-rate band− £0

Taxable estate£0

IHT at 40%£0

Based on 2025/26 allowances. This simplified estimate ignores lifetime gifts, trusts, business and agricultural relief, and pensions.

Ask an adviser about reducing IHT →

Illustrative estimate only. Based on 2025/26 allowances, this is a simplified guide — not financial advice, tax advice, or a calculation of your actual liability. It ignores lifetime gifts, trusts, business and agricultural relief, and pensions, and tax rules change. Confirm your position with a qualified tax adviser or solicitor. Cover Your Family is not FCA regulated.

How inheritance tax is calculated

Inheritance tax is charged at 40% on the value of your estate above your available allowances. Everyone has a nil-rate band of £325,000. If you leave your main home to children or grandchildren, you may also get a residence nil-rate band of £175,000. Married couples and civil partners can pass unused allowances to each other, potentially sheltering up to £1 million between them.

Life insurance written in trust is a common way to cover an expected IHT bill so your family doesn't have to find the cash. See our life insurance advice page, and remember this tool is a simplified estimate — gifts, trusts and reliefs can change the result significantly.

FAQ

Common questions

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