Inheritance Tax Nil-Rate Band Calculator 2026/27
Estimate the 2026/27 Inheritance Tax threshold using the £325,000 Nil-Rate Band and up to £175,000 Residence Nil-Rate Band, while accounting for the qualifying-home limit, spouse transfer percentages and the £2 million RNRB taper.
IHT Threshold Estimator
Illustrative calculation of NRB, RNRB and standard-rate IHT for a death in 2026/27.
Estimated Inheritance Tax Result
2026/27 Inheritance Tax Thresholds
| Allowance | 2026/27 amount | Main condition |
|---|---|---|
| Nil-Rate Band | £325,000 | Standard IHT threshold available to an individual. |
| Residence Nil-Rate Band | Up to £175,000 | Qualifying residence inherited by direct descendants, subject to the value and taper rules. |
| RNRB taper threshold | £2,000,000 | RNRB reduces by £1 for each £2 above the threshold. |
| Standard IHT rate | 40% | Applies to the relevant taxable amount above available allowances. |
How the Residence Nil-Rate Band Works
The Residence Nil-Rate Band is an additional IHT threshold available where a qualifying residence passes to direct descendants. It is separate from the ordinary £325,000 Nil-Rate Band.
The maximum RNRB is £175,000 for 2026/27. It cannot simply be added in full whenever an estate contains a house. The amount can be limited by the value of the qualifying residential interest passing to direct descendants.
Where the net value of the estate exceeds £2 million, the RNRB is reduced by £1 for every £2 over that threshold. This means higher-value estates can lose some or all of the RNRB.
Transfer of Unused Allowances Between Spouses
A surviving spouse or civil partner can generally claim unused portions of the NRB and RNRB from the first death. The calculation is based on the percentage of the earlier spouse's allowance that was unused.
| Allowance | Maximum per person | Potential combined maximum |
|---|---|---|
| NRB | £325,000 | £650,000 |
| RNRB | £175,000 | £350,000 |
| Both bands | £500,000 | £1,000,000 |
Lifetime Gifts and the Seven-Year Rule
Lifetime gifts can affect the IHT calculation. Many gifts are potentially exempt transfers, and no IHT is normally due on a qualifying gift if the donor survives seven years.
If the donor dies within seven years, the gift may become chargeable and may need to be taken into account when working out the available Nil-Rate Band and the IHT due. The precise treatment depends on the type of transfer, exemptions and other lifetime transfers.
Other 2026 IHT Reliefs and Why the Calculator Is Simplified
The NRB and RNRB are not the only IHT rules. Estates can be affected by exemptions and reliefs including spouse or civil partner exemption, charitable exemption, Business Relief and Agricultural Relief.
From 6 April 2026, qualifying agricultural and business property receives 100% relief up to a combined £2.5 million allowance, with the excess generally receiving relief at 50%. Unused amounts can in some circumstances transfer between spouses or civil partners.
Because these rules can materially change the final IHT bill, this page should be treated as an NRB/RNRB estimator rather than a complete estate-tax calculation.
Reduced 36% IHT Rate for Certain Charitable Estates
The normal IHT rate is 40%. A reduced rate of 36% can apply to qualifying portions of an estate where the relevant charitable-giving conditions are satisfied, including the 10% charity test. This estimator does not calculate the reduced charity rate and therefore uses 40% throughout.
Frequently Asked Questions (6)
2026/27 IHT Quick Reference
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Important
This tool estimates the Nil-Rate Band and Residence Nil-Rate Band only. Actual Inheritance Tax can differ substantially because of gifts, exemptions, reliefs, trusts, spouse transfers, charity gifts, business or agricultural property, estate liabilities and other statutory rules.
Probate & Inheritance Guide
Related information on probate applications, estate administration and inheritance procedures.