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IHT calculator

Married Couple / Civil Partnership

Enter the value of your client's assets, ensuring that they are correctly split between Partner 1, Partner 2 and Joint Assets. Once all assets have been included, click the "calculate" button to see the potential IHT implications.

Assets	Partner 1	Partner 2	Joint*	Total for couple
Property				£0
Personal valuables				£0
Bank accounts				£0
PEPs / ISAs				£0
Shares				£0
Life insurance (not in trust)				£0
Car(s)/ vehicles				£0
Other assets				£0
Total assets	£0	£0	£0	£0
Total liabilities: Mortgage / loans / other debts				£0
Estate is worth (Value of estate)	£0	£0	£0	£0

* Based on assets being held in joint tenancy and passing automatically to survivor

The nil rate band (NRB), also known as the inheritance tax (IHT) threshold, is the amount up to which an estate has no IHT to pay. Any unused NRB may be transferred to a surviving spouse or civil partner. The current NRB is £325,000.

Married couple, IHT calculations on 2nd death:
Available NRB	£650,000
Value of estate that is subject to IHT	£0
IHT to pay on 2nd death (40%)	£0

Breakdown of how the IHT liability on 2nd death was calculated
Partner 1's estate is worth	£0	Partner 2's estate is worth	£0
Partner 1's available NRB	£325,000	Partner 2's available NRB	£325,000

Should Partner 1 die first		Should Partner 2 die first
Value of estate to pass to Partner 2	£0	Value of estate to pass to Partner 1	£0
Available NRB value to pass to Partner 2	£325,000	Available NRB value to pass to Partner 1	£325,000
Partner 2's assets on death (combined)	£0	Partner 1's assets on death (combined)	£0
Available NRB on death	£650,000	Available NRB on death	£650,000
Value of estate that is subject to IHT	£0	Value of estate that is subject to IHT	£0
IHT to pay on 2nd death (40%)	£0	IHT to pay on 2nd death (40%)	£0
Effective rate of IHT*	n/a	Effective rate of IHT*	n/a

If taxed as an individual on their death (not married)
Partner 1		Partner 2
Available NRB on death	£325,000	Available NRB on death	£325,000
Value of estate that is subject to IHT	£0	Value of estate that is subject to IHT	£0
IHT to pay on death (40%)	£0	IHT to pay on death (40%)	£0
Effective rate of IHT*	n/a	Effective rate of IHT*	n/a

* Effective rate of IHT = tax paid as a percentage against the total assets. The difference between actual IHT rate of tax (40%) and effective rate will be the NRB.

Important Notes

For the purpose of this calculation we have assumed:

Both individual and spouse are UK domiciled
Individual and spouse are each leaving less than 10% of estate to charity
We have not taken into account any Business Property Relief
We have not taken into account any potentially exempt transfers or chargeable lifetime transfers
Residence nil rate band (RNRB) has not been applied for any property
It is assumed that all assets will transfer to the surviving spouse under spousal exemption upon death

Please note that every care has been taken to ensure that the information provided is correct and in accordance with our current understanding of the law and practice at Her Majesty's Revenue and Customs (HMRC). You should note however, that we cannot take on the role of an individual taxation adviser and independent confirmation should be obtained before acting or refraining from acting upon the information given. The law and HMRC practice are subject to change. Legislation varies from country to country and the policyholder's country of residence may impact on any of the above.