A — Estate Value
The total value of everything you own — property, investments, savings, business interests, personal possessions — minus any debts (mortgage, loans, credit cards). Use current market values.
Gross assets less liabilitiesSome assets only come into the estate on death. A life insurance policy written in your own name (not in trust) increases the estate. Certain debts repaid on death (e.g. a business loan) may reduce it. Enter positive figures to add value, negative to reduce it.
e.g. life assurance in-estate; can be negativeAssets held in a properly constituted trust are generally outside your estate for IHT purposes. Common examples: life policies written in trust, family protection trusts. The trust itself may face separate IHT charges (see Section D).
Excluded from the death estateTaxable estate£0
B — Lifetime Gifts & Taper Relief
Taper relief reduces IHT on gifts made 3–7 years before death, but only where the gift itself exceeds the Nil Rate Band. Enter gifts in the relevant time window. Gifts made more than 7 years ago are fully exempt — do not enter them.
At 6–7 years the taper factor is 80%, so IHT is charged at only 8% (20% of 40%) on any amount above the Nil Rate Band. If the gift is within the NRB, no IHT applies.
At 5–6 years the taper factor is 60%, so IHT is charged at 16% (40% of 40%) on any amount above the Nil Rate Band.
At 4–5 years the taper factor is 40%, so IHT is charged at 24% (60% of 40%) on any amount above the Nil Rate Band.
At 3–4 years the taper factor is 20%, so IHT is charged at 32% (80% of 40%) on any amount above the Nil Rate Band.
Gifts within 3 years of death receive no taper relief — IHT applies at the full 40% on any amount above the Nil Rate Band. These are sometimes called 'failed PETs' (Potentially Exempt Transfers).
Total gifts (7 years)£0
Gift IHT is potentially chargeable on the recipient, not the estate. Shown here for total liability planning.
| Band | Gift amount | NRB allocated | Taxable excess | Tapered rate | Gift IHT |
|---|---|---|---|---|---|
| 6–7 years | £0 | £0 | £0 | 8% | £0 |
| 5–6 years | £0 | £0 | £0 | 16% | £0 |
| 4–5 years | £0 | £0 | £0 | 24% | £0 |
| 3–4 years | £0 | £0 | £0 | 32% | £0 |
| 0–3 years | £0 | £0 | £0 | 40% | £0 |
| Total | £0 | £0 |
C — Allowances & Reliefs
Nil Rate Band (NRB) availableThe Nil Rate Band (NRB) is the threshold below which no IHT is charged — currently £325,000 per person. When a spouse or civil partner dies first and leaves everything to their partner, their unused NRB transfers, giving the survivor up to £650,000 before IHT applies.
Select “Married or Civil Partnership” if a surviving spouse or civil partner's unused NRB is available to transfer.Does a residential property pass to direct descendants?Answer Yes if: (1) you own a residential property (or owned one and have downsized since July 2015), and (2) it will pass — by will or intestacy — to children, grandchildren, step-children, or adopted children. Answer No if the property goes to a spouse, sibling, niece/nephew, friend, or charity, or if you have no property. Worth up to £175,000 per person (£350,000 for couples) — but tapers away on estates above £2 million.
Drives RNRB auto-calculationGifts to UK-registered charities on death are fully exempt from IHT. Additionally, if at least 10% of the net estate passes to charity, the IHT rate on the remainder reduces from 40% to 36% — potentially saving more than the gift costs.
IHT-exempt; may trigger the 36% reduced rateBusiness Property Relief (BPR) and Agricultural Property Relief (APR) can reduce the taxable value of qualifying assets by 50% or 100%. Qualifying assets include shares in unlisted trading companies, AIM shares held for 2+ years, working farmland, and interests in trading partnerships. Enter the full value — the relief is calculated separately.
Business or agricultural property reliefGifts covered by an exemption (£3,000 annual allowance, small gifts up to £250 per person, wedding gifts, regular gifts from surplus income) are not chargeable transfers — they never enter the IHT calculation. This field is for your records only; it has no effect on the IHT figure.
e.g. £3,000 annual allowance, small giftsD — Trust Assets
Trust calculations are estimates only. Obtain a full calculation from a qualified adviser.
Assets excluded from the estate via a trust should be entered in Section A (“Assets written in trust”).
A 'relevant property trust' (also called a discretionary trust) is subject to the IHT 'relevant property regime'. Assets in such trusts face a charge every 10 years (periodic charge, up to 6%) and when assets leave the trust (exit charge). This is separate from the settlor's own IHT position.
Total market value of assets in trustE — Pension / DC Death Benefits
From April 2027, unused pension pots and death benefits are expected to be included in the estate for IHT purposes, subject to final HMRC rules. Toggle this on to model the planned position.
An uncrystallised pension fund is money in a defined contribution (DC) pension that you have not yet accessed (not drawn down). Currently these funds sit outside your estate for IHT. From April 2027, the government plans to bring them within the IHT net — though final HMRC rules are still being confirmed.
Unused funds at deathApply post-April 2027 pension IHT rules?Toggle this on to model the effect of the planned pension IHT changes from April 2027. When on, the pension value above is added to the taxable estate before calculating IHT. This is a planning estimate — the final rules have not been legislated.
F — CGT Planning (Pre-death disposal)
Compare the tax cost of holding assets until death (no CGT, but full IHT) against selling before death (CGT applies, but reduces the estate and IHT).
The 'base cost' (or 'acquisition cost') is what you originally paid for your assets — shares, investment property, business interests, etc. The difference between the base cost and the current market value is the unrealised capital gain. On death, assets are 'rebased' to market value, wiping out any CGT liability — but IHT may apply instead.
Enter £0 if not relevant