Death Duty Calculator for Inheritence tax.

1. Assets (What you own)

Main Home Value

Other Properties

Investments (Shares/ISAs)

Cash / Savings

Insurance Payouts

Other Assets (Cars, Art)

2. Liabilities (Debts)

Mortgage on Main Home

Other Mortgages

Loans / Credit Cards

Funeral Costs

3. Exemptions

Charity Bequests

Transferrable Nil Rate Band

Leaving home to direct descendants (children/grandchildren)?

Common Inheritance Tax Myths

Myth: The "7 Year Rule" always avoids tax

Reality: Gifts made 7+ years before death are exempt. However, if you die within 7 years, the gift uses up your tax-free allowance first, potentially leaving less allowance for your other assets.

Myth: I can give my house away and still live in it

Reality: This is a "Gift With Reservation". If you live rent-free in a home you gifted, it still counts as part of your estate for tax purposes. You must pay market-rate rent to the new owner to avoid this.

Myth: Spouses always pay tax

Reality: Assets left to a spouse or civil partner are 100% tax-free (Spouse Exemption). Plus, any unused allowance transfers to the surviving partner, potentially doubling their allowance to £1 million.

When must Inheritance Tax be paid?

Deadline: Tax must usually be paid by the end of the 6th month after the person died (e.g., if they die in Jan, pay by 31 July). Interest is charged by HMRC on late payments.

Can I pay in installments?

Yes, for some assets. Tax on "illiquid" assets like property or unquoted shares can often be paid in 10 annual installments. However, interest is usually charged on the unpaid balance.

Does Business Property Relief (BPR) apply?

It depends. BPR can reduce tax by 50% or 100% on business assets owned for 2+ years. Note: From April 2026, only the first £1m of business assets are 100% relief; value above £1m gets 50% relief.