Inheritance tax calculator

This tool can help you estimate what your estate might be worth and how much inheritance tax your beneficiaries might have to pay.

It can also show you how leaving a gift to charity in your will could reduce your tax bill — in some cases significantly.

Please note

This calculator provides an illustrative example only and does not constitute tax, legal or financial advice.

We recommend consulting a qualified financial adviser or solicitor for advice specific to your situation. To find a solicitor visit the Law Society or contact us at giftsinwills@arthritis-uk.org

Changes from April 2027

From 6 April 2027, unused defined contribution pension savings will be included in your estate for inheritance tax purposes.

The government estimates that 10,500 estates will pay IHT for the first time, and 38,500 will pay more as a result (2027/28). If you have a DC pension, you can include it below to see how this might affect you.

Estimate your inheritance tax

Your assets

Enter the approximate value of your assets, including:

  • Primary residence + other properties
  • Investments
  • Cash & savings
  • Life insurance policies
  • Other physical assets

As well as your defined contribution pension pot.

A defined contribution pension (DC) is a pot you build up by paying in money during your working life e.g. a workplace pension. These are invested and dependent on market performance. From April 2027, unused DC pensions will be subject to IHT.

A defined benefit pension pays you a guaranteed regular income based on salary and years of employment. Your employer bears the risk. A defined benefit pension is not subject to IHT.

Estimate your inheritance tax

Your liabilities

Your liabilities are subtracted from your assets to determine your net estate value. This is the figure used to calculate inheritance tax.

Please note: Funeral expenses and costs of administering your estate can also be deducted but are not included in this simplified calculation.

Estimate your inheritance tax

Your tax-free allowances

Everyone has a tax-free allowance called the nil-rate band, currently £325,000. If your estate is worth less than this, no inheritance tax is due.

You may also qualify for the residence nil-rate band (up to £175,000) if you're leaving your home to direct descendants such as children or grandchildren.

If you're widowed, you may be able to claim your late spouse's unused allowances, potentially doubling your tax-free amount.

Please note: Tax rules can be complex and change over time. This calculator uses current thresholds and provides an illustrative example only.

Your inheritance tax estimate

Based on the information you've provided, we've estimated how much inheritance tax might be due on your estate.

Use the slider to explore how a charitable gift in your will could reduce your tax bill. Your beneficiaries may receive almost the same amount, while also supporting a cause you care about.

Please note: This is an illustrative estimate only. Your actual tax position may differ depending on your full circumstances. We recommend consulting a qualified financial adviser or solicitor.

The impact of a gift in your will

A gift in your Will to Arthritis UK could help fund a future where no life is limited by arthritis.

Your gift could help us:

Fund groundbreaking research to find better treatments and, ultimately, a cure

Support our helpline, answering thousands of calls from people who need advice and reassurance

Train health and care professionals to improve the treatment and care that people living with arthritis receive

Provide specialist equipment to children, one to one support and advice so families don’t face arthritis alone

Run pain management workshops to help people take control of their condition

Together, we’re taking action so that no more of life’s important moments are lost to pain. We’re building a future where life comes first.

Legacies fund a significant portion of our work and without support from people like you, much of what we do wouldn’t be possible. Please consider a gift in your Will to Arthritis UK, for lives without limits.

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Assets
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Liabilities
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Circumstances
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Results

Your assets

Enter the approximate value of your assets.

e.g. buy-to-let, holiday homes, land
e.g. stocks, shares, ISAs, bonds
e.g. bank accounts, savings, premium bonds
Only policies not written in trust
e.g. vehicles, jewellery, art, antiques
Total assets (excl. pension) £0
Only include defined contribution pensions (e.g. personal pensions, SIPPs). Defined benefit (final salary) pensions are not affected by the 2027 changes.

From April 2027: Unused pension savings will be included in your estate for inheritance tax. Currently, most pension pots are passed on free of IHT.

Total assets (excl. pension) £0
Total assets (incl. pension) £0

UK assets only. This calculator is designed for estates with UK assets. If you hold overseas assets, different rules and potential double taxation may apply. Please seek professional advice.

No business or agricultural relief. The calculator does not apply Business Property Relief (BPR) or Agricultural Property Relief (APR). If you own qualifying business or agricultural assets, your actual tax may be lower than estimated.

Your liabilities

Enter any outstanding debts.

Outstanding balance on your main home
e.g. buy-to-let or holiday home mortgages
e.g. personal loans, car finance, credit cards
e.g. money owed to family, unpaid bills
Total liabilities £0

Your circumstances

These details help calculate your allowances.

Full nil-rate band assumed. The calculator assumes the full nil-rate band is available. If you have made gifts of more than the nil-rate band (£325,000) in the seven years before death — such as failed potentially exempt transfers (PETs) or lifetime chargeable transfers — the amount available may be reduced.

Your results

Estate value £0
Tax-free allowance £0
To beneficiaries £0
Inheritance tax due £0

Did you know you could reduce your tax bill?

If you leave a portion of your estate to a registered charity like Arthritis UK, that gift is completely exempt from inheritance tax. Even better, leaving 10% or more to charity reduces the tax rate on the rest of your estate from 40% to 36%.

Explore a gift to Arthritis UK

10% = £0
Your tax saving
£0
Leave 10%+ to charity for reduced 36% tax rate
No gift With gift
Tax rate 40% 40%
Tax due £0 £0
Gift to charity £0 £0
To beneficiaries £0 £0

Simplified tax rate application. This calculator applies a single tax rate (40% or 36%) to the entire taxable estate.

Charitable apportionment not modelled. Where an estate has multiple components — for example, where the residue is split between exempt beneficiaries (like charity) and non-exempt beneficiaries — the "Re Benham" and "Re Ratcliffe" rules may affect how inheritance tax is apportioned between them, and whether the estate qualifies for the reduced 36% rate. Full modelling of these rules is beyond the scope of this illustrative tool. If your will includes complex residuary provisions involving charity, we recommend seeking professional advice.

Leave a gift that lasts

A gift in your will to Arthritis UK could make a lasting difference to the lives of people living with arthritis — while reducing your inheritance tax bill.

We'd love to help you take the next step

Enter your details and we'll send you more information about leaving a gift in your will, how we can support you, and how your gift can bring us closer to a future free from arthritis.

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