Calculate Inheritance Tax with the £175,000 residence nil rate band: home-to-descendants cap, £2m taper, transferred spouse allowances and the 36% charity rate.
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Computes IHT (2025/26) combining the £325,000 nil rate band and the £175,000 residence nil rate band when a home passes to direct descendants — capped at the home value, tapered £1 per £2 above a £2,000,000 estate — plus transferred allowances from a deceased spouse and the reduced 36% rate when at least 10% of the net estate goes to charity.
£800,000 estate with a £400,000 home left to the children: £325,000 NRB + £175,000 RNRB = £500,000 of allowances — IHT of 40% on £300,000 = £120,000 (15% effective).
Enter the total estate value and the home value passing to children or grandchildren.
Add transferred nil rate band percentages from a predeceased spouse.
Add any charity legacy to test the 36% reduced rate.
Read the allowances, taxable estate and IHT due.
Last data update
July 5, 2026
Sources and references
GOV.UK — IHT residence nil rate band (gov.uk/guidance/inheritance-tax-residence-nil-rate-band); transfer of threshold; charity reduced rate.
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
Up to £175,000 per person (frozen until April 2030), on top of the £325,000 nil rate band — but never more than the value of the home share passing to direct descendants.
For every £2 of estate above £2,000,000, £1 of RNRB is lost. A single £175,000 RNRB vanishes at £2.35m; a full transferred double RNRB at £2.7m.
Children, grandchildren and their lineal descendants — including adopted, step and foster children, and their spouses or civil partners.