Inheritance tax calculator shows how much IHT could be due – and ‘it may surprise you’

Person holding laptop

An online inheritance tax calculator has been launched

Jessica Sheldon

By Jessica Sheldon

Published: 09/09/2023

- 06:00

Updated: 14/11/2023

- 16:14

The standard inheritance tax rate is 40 per cent on any amount above the threshold

Inheritance tax receipts are on track for a record year and, with house prices rising but the inheritance tax threshold frozen until 2028, many may well be looking at whether their estate could spark an inheritance tax bill.

There are ways to reduce an inheritance tax bill, and planning ahead could mean families don’t need to pay the tax, or at least minimise what they do need to pay.

An online inheritance tax calculator has been launched, offering people the chance to get an estimate of how much inheritance tax could be due on their estate.

The “Inheritance tax calculator” tool is available on the St James’s Place website and the firm says the “result may surprise you”.

Person looking at documents while sitting on sofa

Users can get a quick assessment of IHT liability by inputting the best estimate of the value of their assets


Before using it, it’s important to note that it’s a quick guide, and won’t include other reliefs and exemptions which may apply.

It also doesn’t include any gifts that have been made in the past seven years or entitlements that may be in existing trusts, and these could increase the amount of IHT payable.

Furthermore, for those who are married or in a civil partnership, IHT liability might not kick in until the second death, depending on the provisions of Wills.

Users can get a quick assessment of IHT liability by inserting the best estimate of the value of their assets into each of the fields in the tool.

This includes the value of one’s home and other properties, investments and regular savings.

They also need to input estimates of financial commitments, such as mortgage(s) and loans secured on their home or other properties and things like overdrafts and credit cards.

Once completed, the user needs to press “calculate” and a calculation on the net estate, and the amount liable to IHT for individuals and for couples will show up.

The tool also suggests the IHT liability for individuals at 40 per cent and the IHT liability for couples at the same rate.

The answers are based on a number of assumptions.

These are that the main residence is left to direct descendants, meaning the Residence Nil Rate Band (currently £ 175,000) has been applied.

It also assumes that, for couples, all assets are left to the survivor on the first death, so form part of the survivor’s estate on the second death.

Among the other assumptions, no account is taken of reduced rates of inheritance tax, such as where some or all of the estate is left to charities.

The tool is only designed to indicate whether an estate may potentially be subject to inheritance tax in the event of death, and it’s important to note the IHT rate, threshold and relief could change.

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