How to Calculate Inheritance Tax UK 2025/26

To calculate IHT on a UK estate: total all assets at their open market value on the date of death, deduct liabilities, deduct the nil-rate band and residence nil-rate band where applicable, and apply 40% to the remainder.

Gifts made in the seven years before death may also be added back to the estate for IHT purposes. Business and agricultural assets may qualify for full or partial relief, reducing the taxable total before the rate is applied.

• Free IHT Calculator
• Nil-Rate Band
• Step-by-Step Worked Example
• 7-Year Gifting Rule
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