This page shows the UK Inheritance Tax due on a £1 million estate under current HMRC rules. The calculator above is pre-filled with £1 million — change it to your own figure. Inheritance Tax applies across the whole UK; there is no separate Scottish, Welsh or Northern Irish rate.
Inheritance tax on a £1 million estate — three common cases
| Scenario | Tax-free bands | IHT due | Effective rate |
|---|---|---|---|
| Single estate, no home to children | £325,000 | £270,000 | 27.0% |
| Home left to children (adds RNRB) | £500,000 | £200,000 | 20.0% |
| Married couple, both bands transferred | £1,000,000 | £0 | 0.0% |
Worked example — single estate of £1 million
| Step | Amount |
|---|---|
| Net estate | £1,000,000 |
| Less nil-rate band | −£325,000 |
| Taxable estate | £675,000 |
| Rate | 40.0% |
| Inheritance Tax due | £270,000 |
Inheritance Tax is charged at a flat 40.0% on everything above the available bands (or 36.0% if 10%+ of the net estate goes to charity). The £325,000 nil-rate band always applies; the £175,000 residence nil-rate band is added only when a qualifying home passes to direct descendants.
The current UK Inheritance Tax rules
| Allowance / rate | Amount | Notes |
|---|---|---|
| Nil-rate band (NRB) | £325,000 | 0% on this slice of every estate |
| Residence nil-rate band (RNRB) | £175,000 | Only when a home passes to direct descendants |
| Taper threshold | £2,000,000 | RNRB falls £1 for every £2 of estate above this |
| Standard rate | 40.0% | On the estate above the available bands |
| Reduced charity rate | 36.0% | If ≥10% of the net estate goes to charity |
A surviving spouse or civil partner can inherit the unused percentage of a late partner’s nil-rate band and residence nil-rate band — potentially doubling both, so a couple can shelter up to £1,000,000 (2 × £325,000 + 2 × £175,000) when a home passes to children.
Sources & as-of
- Nil-rate band, residence nil-rate band, 40% / 36% rates, £2m taper: GOV.UK — Inheritance Tax.
- Bands frozen at these levels until 5 April 2030 (end of tax year 2029-30): GOV.UK — IHT nil-rate bands from 6 April 2028.
- Residence nil-rate band conditions & taper: GOV.UK — Residence nil-rate band.
- Gifts & 7-year taper relief: GOV.UK — Inheritance Tax: gifts.
- Data as-of 2026-06-18. This is a planning estimate, not tax advice — confirm your figures with HMRC or a qualified solicitor / financial adviser. Inheritance Tax applies UK-wide (there are no devolved IHT rates).