UK Inheritance Tax (IHT) & Nil Rate Band Planner
Calculate UK estate inheritance tax and estimate tapered nil rate bands.
UK Inheritance Tax (IHT) & NRB Planner
Plan estate tax liabilities and estimate your Nil Rate Band thresholds under HMRC guidelines.
Estate Assets
HMRC Nil Rate Allowances
What is the UK Inheritance Tax (IHT) & Nil Rate Band Planner?
Calculate UK Inheritance Tax (IHT). Estimates tax liabilities on estates, factoring in the £325,000 basic allowance and residential nil rate bands.
How Does the UK Inheritance Tax (IHT) & Nil Rate Band Planner Work?
1. Input total estate value. 2. Select if passing home to direct descendants. 3. View threshold limits, taxable estate, and IHT bill.
Formula & Calculation Method
Applies basic Nil Rate Band (£325,000) and Residence Nil Rate Band (£175,000 if passing home to kids/grandkids). Tapers the RNRB by £1 for every £2 on estates exceeding £2,000,000. Taxes remaining value at 40%.
Example Calculation
Estate £600,000, passing home to children. Total threshold = £325k + £175k = £500,000. Taxable estate = £100,000. IHT owed (40%) = £40,000.
Frequently Asked Questions
Applies basic Nil Rate Band (£325,000) and Residence Nil Rate Band (£175,000 if passing home to kids/grandkids). Tapers the RNRB by £1 for every £2 on estates exceeding £2,000,000. Taxes remaining value at 40%.
Disclaimer: This tool is provided for informational and calculation purposes. Output values are estimates based on standard user inputs.