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Inheritance tax calculator

How it works

Everyone can leave up to £325,000 of their total estate free of inheritance tax (the nil-rate band), provided this allowance hasn’t been used when making gifts, for example, or settling assets into trust. 

A person’s estate is the sum of their savings, investments, the market value of the house they live in and their other assets. 

There’s an additional inheritance tax allowance to be aware of – the residence nil-rate band (RNRB).

By filling in the boxes below, our calculator will estimate the degree to which the RNRB may be of benefit – and therefore gives some indication of the inheritance tax due on the estate.

Things to bear in mind

Inheritance tax can be a complicated topic and this calculator is intended to help you understand some of the key areas. It’s been prepared in good faith and is based on our understanding and interpretation of the current law. 

Keep in mind that specific circumstances that are outside of the scope of this calculator may result in different levels of inheritance tax being due. Also bear in mind that legislation may change in the future.

1
Assess your situation
How much is your house worth?
?
Other properties
?
Savings
?
Investments
?
Other
?
Based on the estimated figures you have entered, this gives an estate value of:
House value: £ 0
Value of other assets: £ 0
Total estate value: £ 0

Your estate is worth more than £2 million.

The RNRB may be restricted or not available at all. For the purposes of this calculator, we have assumed that your estate will not benefit from the RNRB. We recommend you seek professional advice specific to your situation.

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2
Your marital status
What is your marital status? ?

  • Married/Civil partnership

  • Widowed

  • Unmarried/Divorced

Assets left to spouses are not normally subject to inheritance tax. It may be useful for you to provide information for the value of your joint estate if you would expect to inherit all of your spouse's assets.

Did your spouse leave all their assets to you?

Yes

No

Did your spouse or civil partner use all of their nil-rate band? ?

Yes

No

How much did they leave unused?

Was the value of your spouse's estate more than £2 million when they died?

Yes

No

Warning icon

If your spouse's estate exceeded £2 million, your entitlement to an additional RNRB may be reduced, or even eliminated. We have assumed that your estate will not benefit from any additional RNRB from your spouse, but recommend that you seek professional advice as to your specific situation.

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3
Plan for the future

Did you sell your home before 8 July 2015? Warning icon

Yes

No

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4
Year by year results

Select one of the two buttons below to see how the residence nil-rate band might apply to your situation. The calculator assumes that you die in the tax year which is checked below.

The residence nil-rate band is £175,000 for the 2020/2021 tax year. Beginning in the 2021/2022 tax year, it will increase every year in line with inflation, as measured by the Consumer Price Index.

Select one of the two buttons below to see how the residence nil-rate band might apply to your situation. The calculator assumes that you die in the tax year which is checked below.

The residence nil-rate band is £175,000 for the 2020/2021 tax year. Beginning in the 2021/2022 tax year, it will increase every year in line with inflation, as measured by the Consumer Price Index.

2020 and beyond

Before Starting

Inheritance tax can be a complicated topic and these tools are intended to help you understand some of the key areas. They have been prepared in good faith and are based on our understanding of the law and our interpretation of it. But we do not provide tax advice. So, while we have tried to make inheritance tax simple, this calculator is not intended as a proxy for taking professional advice - advice that will help you understand how much tax may be due on any gifts you make or on your estate.

We always recommend that, prior to undertaking any tax planning, you seek the advice of a qualified professional adviser. He or she can take your personal circumstances into account and give up to date advice based on the rules at the time.

The investments that we manage are high risk and the value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest. Tax treatment depends on individual circumstances and may change in the future. Tax reliefs depend on the portfolio companies maintaining their qualifying status. The shares of the smaller companies we invest in could fall or rise in value more than shares listed on the main market of the London Stock Exchange. They may also be harder to sell. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: November 2016

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Guide to inheritance tax

Our straightforward guide can help clients gain a better understanding of inheritance tax, and discover ways they can reduce inheritance tax liabilities. We’ve designed this guide specifically so you can share it with clients and walk them through their options.

Read more
Read more

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