IHT calculator

Portcullis Wealth Retention Ltd is not authorised or regulated by the Financial Conduct Authority to provide advice on regulated products such as pensions, but can provide advice on tax planning, estate planning or trust advice The information set out above is based on legislation in force and proposed legislation as at the date of publication; tax rules and announced reforms are subject to change. The treatment of taxation depends on individual circumstances and may change in the future. This content is for information only and does not constitute personal financial, tax or legal advice. Please contact us for advice tailored to your circumstances.

UK Inheritance Tax Comparison Calculator

Compare your estimated Inheritance Tax position before and after the 6 April 2027 changes to the treatment of unused pension funds.

Please read: This calculator provides a simplified estimate of potential UK Inheritance Tax based on the information you enter. It is illustrative only and is not financial advice, tax advice, legal advice, or a substitute for personalised estate planning advice. Tax rules and announced reforms may change. Please speak with a qualified adviser before taking action.
1. Personal & estate details
Used to determine whether transferable allowances may be available.
Adds up to £325,000 of unused NRB from a deceased spouse or civil partner.
Adds up to £175,000 of unused RNRB from a deceased spouse or civil partner.
The Residence Nil Rate Band only applies where a qualifying residence is left to children, grandchildren or other direct descendants (including step, adopted and foster children).
2. Estate assets (£)
ISAs, GIAs, shares, bonds etc. (excluding pensions).
Enter the value to be included in the estate. Business Relief is not applied automatically – speak with an adviser if relief may apply.
Generally outside the IHT estate before 6 April 2027 and inside the IHT estate from 6 April 2027 onwards.
Most pension death benefits will fall within the estate from 6 April 2027.
Death in service benefits payable from a registered pension scheme are generally excluded from the IHT estate under both scenarios.
3. Deductions (£)
4. Lifetime gifts (simplified)

Enter gifts made in the last 7 years. Gifts will be treated as using the Nil Rate Band first (simplified). Taper relief on the tax due on failed PETs is not applied in this calculator. Please discuss complex gifting scenarios with an adviser.

5. Charitable gifts (£)
Where at least 10% of the baseline net estate is left to charity, the IHT rate on the rest of the chargeable estate may reduce from 40% to 36%. This is a simplified test – the actual rules involve component-by-component calculations and should be checked professionally.
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Estimated IHT before 6 April 2027
£0
Estimated IHT from 6 April 2027
£0
Additional estimated IHT due to pension inclusion
£0
Estimated reduction in net estate passed to beneficiaries
£0

Before 6 April 2027

Most unused pensions outside the estate

Gross estate (excl. pensions) £0
Less: liabilities £0
Net estate £0
Less: charitable gifts £0
Nil Rate Band used (after lifetime gifts) £0
Initial available RNRB £0
Estate value used for taper test £0
Amount over £2,000,000 £0
RNRB taper reduction £0
RNRB after taper £0
Taxable estate £0
Effective IHT rate 40%
Estimated IHT £0
Estimated net to beneficiaries £0

From 6 April 2027

Most unused pensions included in the estate

Gross estate (incl. pensions) £0
Pension value added to estate £0
Less: liabilities £0
Net estate £0
Less: charitable gifts £0
Nil Rate Band used (after lifetime gifts) £0
Initial available RNRB £0
Estate value used for taper test £0
Amount over £2,000,000 £0
RNRB taper reduction £0
RNRB after taper £0
Taxable estate £0
Effective IHT rate 40%
Estimated IHT £0
Estimated net to beneficiaries £0

Key differences

  • Estimated additional IHT due to post-April 2027 pension inclusion: £0
  • Estimated reduction in net estate passed to beneficiaries: £0
  • Difference in effective IHT rate: 0%

Important notes & assumptions

  • This calculator is simplified and does not deal fully with Business Relief, Agricultural Relief, complex trusts, domicile issues, multiple estates, taper relief on failed lifetime gifts, or all pension scheme exceptions.
  • Lifetime gifts can affect the Nil Rate Band and IHT payable. The treatment used here is illustrative.
  • The Residence Nil Rate Band is only available where a qualifying residence is left to direct descendants.
  • The Residence Nil Rate Band tapers away by £1 for every £2 the net estate exceeds £2,000,000.
  • From 6 April 2027, most unused pension funds and pension death benefits are expected to fall within the estate for IHT purposes.
  • Death in service benefits payable from a registered pension scheme are generally excluded from the IHT estate.
  • Charity rate reduction (40% to 36%) is shown using a simplified 10% test on the baseline net estate.
  • Tax rules and announced reforms may change. Please seek professional advice before acting.
Disclaimer: This calculator provides a simplified estimate of potential UK Inheritance Tax based on the information you enter. It is illustrative only and does not constitute financial advice, tax advice, legal advice or a substitute for personalised estate planning advice. The figures shown should not be relied upon for decision-making. Please contact a qualified financial adviser to discuss your personal circumstances.