Free tool · England & Wales · 2026/27 rules
Inheritance Tax Calculator
Estimate the inheritance tax on your estate under today's rules, and see what changes when unused pensions come into the estate from 6 April 2027. No email needed, nothing is stored.
Under today's rules
£0
Estate counted: £500,000 (pensions currently outside the estate)
- Nil-rate band used: £325,000
- Residence nil-rate band: £175,000
- Taxable: £0 at 40%
From 6 April 2027 (pensions included)
£60,000
£60,000 more tax once unused pensions count, worth reviewing your will and pension nominations before 2027.
Estate counted from April 2027: £650,000.
What to do with this number
- Read the 2026–2027 IHT changes guide, what the pension change means for wills.
- Make or update your will, kits from £15, England & Wales.
- Not sure which kit? Take the 60-second quiz.
Get the free IHT 2026–2027 factsheet
Plain-English summary of the April 2026 and April 2027 IHT rule changes - what they mean for your estate, and what to do now.
About this estimate. Information tool, not financial, tax or legal advice. Figures use the 2026/27 rules for England & Wales: £325,000 nil-rate band (frozen to April 2031), up to £175,000 residence nil-rate band tapered above £2m estates, 40% standard rate (36% with a 10% charitable legacy), and the inclusion of unused pension funds from 6 April 2027 announced in the Autumn 2024 Budget (final legislation may differ). It ignores lifetime gifts, trusts, business and agricultural reliefs, and foreign assets. For a complex estate, take regulated financial or legal advice. WillSafe UK is a template publisher, not a firm of solicitors or an adviser.
How inheritance tax is worked out in 2026/27
Inheritance tax in England and Wales is charged at 40% on the part of your estate above your allowances. Everyone has a nil-rate band of £325,000, frozen until April 2031. If you leave your home to children or grandchildren, the residence nil-rate band adds up to £175,000 on top, although it tapers away by £1 for every £2 your estate exceeds £2 million. Anything left to a spouse or civil partner is exempt, and whatever allowances they do not use transfer to the survivor, which is why many widowed people have double allowances. Leave 10% or more of your net estate to charity and the rate on the rest drops from 40% to 36%.
The April 2027 pension change
From 6 April 2027 most unused pension funds and death benefits are due to be counted as part of the estate for inheritance tax, following the Autumn 2024 Budget. An estate that is comfortably under the threshold today can be pushed over it once a pension is added, and a larger estate can also lose residence nil-rate band through the £2 million taper. The calculator shows your position both before and after the change so you can see whether it affects you. If it does, our guide to the 2026/2027 IHT changes explains what to update in your will, and the pension beneficiary guide covers nomination forms, which sit outside your will entirely.
Business, farm and AIM assets are not modelled here
From 6 April 2026 a £2.5 million allowance applies to property qualifying for 100% agricultural property relief or business property relief; value above the allowance gets 50% relief, an effective 20% charge. Shares not listed on a recognised stock exchange, which includes all AIM shares, receive 50% relief only from 6 April 2026 and do not use up the £2.5 million allowance. This calculator deliberately keeps to the mainstream household estate, so if you own a business, farmland or AIM shares, treat the result as a starting point and read our full inheritance tax guide before making decisions.
What to do with your result
A likely bill is not a reason to panic; it is a reason to put the basics in place. A valid will controls who benefits from your allowances, and simple steps such as leaving the home to direct descendants or adding a charitable gift can change the calculation materially. Start with the guided will builder, browse more reading on the inheritance tax hub, or compare estates like yours in IHT by estate size. This page is general information, not tax or legal advice.