What could your Inheritance Tax bill be?
Inheritance Tax (IHT) is charged at 40% on the value of your estate above your allowances. Depending on your circumstances, there may be legitimate tax planning options that could reduce a future Inheritance Tax liability.
Fill out our quick IHT Calculator below to get an indication of your potential IHT bill:
Please note that this tool provides an estimate and does not account for gifts made in the past 7 years, existing Trusts and Wills and other potential factors that could increase or decrease the potential Inheritance Tax Bill. This calculator includes pension values within the estate based on proposed Inheritance Tax changes due to take effect from April 2027, under which most unused pension funds and death benefits are expected to form part of an individual’s estate. The calculation assumes all pension benefits fall within the scope of these proposed changes; however, this may not be the case in all circumstances.
This is an indicative calculation only and cannot be relied upon for accurate information due to the absence of certain factors. Inheritance Tax calculations are complex and for an accurate calculation we recommend a Financial Planner assists you with this and any potential advice required. Tax laws may change, and this tool is for illustrative purposes only.
Why is calculating your IHT bill now more important than ever?
Changes to IHT are on the horizon. From April 2027, most unused pension funds are expected to be included in the value of your estate for IHT.
This is a significant shift from current rules and could mean more of your wealth is taken into account when calculating a potential IHT bill.
At the same time, tax-free thresholds have been frozen for several years. As property values and savings grow, more estates are being drawn into scope.
This IHT calculator will give you a quick estimate of where you stand today – and whether these changes could affect you.
How can you prepare for these changes?
With changes coming in April 2027, it may be worth reviewing how your pension and wider estate fit together, ensuring your plans – including wills and nominations – are up to date, and understanding your potential exposure as thresholds remain frozen. You can learn more about the steps involved in our article on preparing for IHT changes in April 2027, or by downloading our free guide to IHT and estate planning.
