What would the inheritance tax bill be?

What your estate would pay as things stand, and which bands you can use.

What it is doing

Anything above the bands is taxed at 40%. The main band is £325,000 a person, frozen until 5 April 2030. There is a further £175,000 if a home passes to children or grandchildren.

A married couple can usually use two of each, because whatever the first one does not use passes to the survivor. That is the £1,000,000 figure people have heard about. It only holds if a qualifying home is going to direct descendants.

Above a £2,000,000 estate the residence band tapers away at £1 for every £2, which the calculation applies.

What it cannot tell you

It cannot account for gifts made in the last seven years, business or agricultural relief, trusts, or anything left to a spouse or civil partner — all of which are exempt or reduce the bill, and any of which can change the answer substantially.

This is information. It is not a personal recommendation. Whether any of it is right for you depends on your circumstances.

The questions behind it

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