What your estate would pay as things stand, and which bands you can use.
Anything above the bands is taxed at 40%. The main band is £325,000 a person, frozen until 5 April 2031. 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. The £1,000,000 total for a couple applies only 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.
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.
Whether your pensions will cover the retirement you want, and by how much they miss.
Work it out →Debts to clear, plus the income that would have to be replaced, less what is already in place.
Work it out →The same company profit paid into your pension, as salary or as a dividend, and what each route leaves you after tax.
Work it out →From 6 April 2027 the money left in your pensions when you die counts as part of your estate for inheritance tax.
Your first call is with an Account Manager and is at no cost to you. Tell us what is on your mind: a pension you have lost track of, a fixed rate ending, a will you keep meaning to write.