Inheritance Tax Calculator
How much of your estate would go to inheritance tax under today's rules — and what Reform's abolition-under-£2m plan, the 2027 pension change and the Greens' wealth-tax alternative would mean.
The estate
The most-hated tax that almost nobody pays — yet
Only about 1 in 20 estates pays inheritance tax, but the net is widening fast: the £325,000 band has been frozen since 2009, pensions join the estate from April 2027, and farm and business reliefs are capped from April 2026. That's why it's a live battleground: Reform UK has proposed abolishing IHT below £2 million (with 20% above), parts of the Conservative party want outright abolition, while the Greens would tax large fortunes annually instead of waiting for death. Whichever way the argument goes, it moves more money for affected families than almost any other policy on this site.
Frequently asked questions
How much can you inherit tax-free in the UK?
The estate — not you — pays the tax. A single person's estate has £325,000 tax-free (plus £175,000 if a home passes to children); married couples combine bands for up to £1 million. Above that, 40% applies.
Do pensions get inheritance tax?
From April 2027, yes — unused pension pots are counted in the estate for IHT, reversing decades of pensions passing tax-free. It's one of the biggest changes to estate planning in a generation.
Which party would abolish inheritance tax?
Reform UK has proposed abolishing it for estates under £2 million with a 20% rate above; some Conservatives back full abolition. Labour has instead broadened the base (pensions, capped reliefs); the Greens would replace death taxes with an annual wealth tax above £10 million.