UK Inheritance Tax Residence Nil-Rate Band (RNRB) Calculator 2026/27

Calculate UK Inheritance Tax for 2026/27 with the full Residence Nil-Rate Band (RNRB) treatment. Handles the £325,000 standard NRB, the £175,000 RNRB when a qualifying residence passes to direct descendants, the £2M estate taper (£1 RNRB lost per £2 above £2M), the transferable spouse RNRB (combined up to £350,000), and the 36% reduced rate when 10%+ of net estate goes to charity. Free, HMRC-aligned, runs in your browser.

Estate
Gross value of all assets at death — property, cash, investments, pensions in scope, less debts and funeral costs.
Value of main residence (or one) passing to direct descendants — children, grandchildren, stepchildren, adopted, foster.
RNRB only applies if a qualifying residence passes to direct descendants under the will or intestacy.
A surviving spouse can claim any unused NRB and RNRB from a previously deceased spouse.
Transferred Allowances (if widowed)
Percentage of late spouse's NRB unused at their death — typically 100% if they left everything to you.
Percentage of late spouse's RNRB unused. RNRB is brought forward at the rate in effect at YOUR death (£175k).
Lifetime Gifts & Charity
Gifts in 7 years before death — eat into NRB first. Taper relief reduces tax (not gift) on gifts 3-7 years old.
If 10%+ of net estate goes to UK-registered charity, IHT rate drops from 40% to 36%.
Total IHT due (2026/27)
£0
Effective IHT rate on estate
0%
Total NRB available
£0
Total RNRB available
£0
Calculation Breakdown
Step Amount
2026/27 thresholds (frozen per Autumn Budget): Standard NRB £325,000; RNRB £175,000 — both frozen until 5 April 2030. RNRB tapers £1 per £2 over £2,000,000 (so fully lost at £2,350,000 estate without spousal transfer, or £2,700,000 with full spousal transfer). Standard IHT rate 40%; reduced rate 36% if 10%+ of net estate after deductions goes to UK-registered charity. RNRB requires a qualifying residence (at some point the deceased's home) passing to direct descendants under will or intestacy.

Source: HMRC — Inheritance Tax: Residence Nil Rate Band (gov.uk) + Spring Budget 2026 frozen-threshold confirmation. Last updated: May 3, 2026.
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What Is the UK Residence Nil-Rate Band (RNRB)?

The Residence Nil-Rate Band (RNRB) is an additional UK Inheritance Tax allowance, introduced in April 2017, available when a qualifying residential interest passes on death to direct descendants (children, grandchildren, stepchildren, adopted children, or foster children) of the deceased. For tax year 2026/27, the RNRB stands at £175,000 — frozen at this level until 5 April 2030 per the Autumn Budget. It sits on top of the £325,000 standard Nil-Rate Band (NRB), giving an individual a combined allowance of up to £500,000 against an estate that includes a qualifying home left to direct descendants. Source: HMRC — gov.uk.

RNRB is not automatic. It only applies if (a) the deceased had a qualifying residential interest at some point in their life, (b) that interest is closely inherited by direct descendants, and (c) the estate does not exceed the £2,000,000 taper threshold by too much. If the home was sold or downsized before death, a separate "downsizing addition" can preserve the RNRB — that is a complex area requiring HMRC IHT436 / IHT435 forms.

The £2,000,000 Estate Taper (How RNRB Reduces)

The RNRB is tapered for larger estates. For every £2 the estate exceeds £2,000,000, £1 of RNRB is withdrawn. Practically, this means:

The taper test uses the gross estate before reliefs and exemptions, including chargeable lifetime transfers within seven years. This catches more taxpayers than expected. If your estate is approaching £2M, lifetime gifting, charity bequests, or business property relief planning can preserve the RNRB.

Transferable RNRB Between Spouses and Civil Partners

If a spouse or civil partner died before you (whether before or after April 2017 — even if they died before RNRB existed), any unused proportion of their RNRB transfers to your estate. The transfer is calculated as a percentage of the RNRB unused at the first death, applied against the RNRB amount at the second death. Example: spouse 1 died in 2018 leaving everything to spouse 2, using 0% of their RNRB. Spouse 2 dies in 2026/27 — spouse 2's estate gets a 100% transfer = an additional £175,000 RNRB on top of their own £175,000, for £350,000 combined RNRB. Combined with two NRBs (£650,000) the total nil-rate threshold rises to £1,000,000 against an estate with a qualifying home to descendants.

The transfer must be claimed on form IHT436 within two years of death (extendable in some cases). It is not automatic — executors must apply.

Reduced 36% Rate for Charitable Estates

Where 10% or more of the net estate (after NRB, RNRB, and other reliefs but before the charity bequest itself) is left to a UK-registered charity, the standard 40% IHT rate is reduced to 36% on the rest of the estate above the available nil-rate bands. The 10% test applies separately to each "component" of the estate (survivorship, settled, free) — it is rarely advantageous on smaller estates but can produce meaningful savings on large estates with significant charitable intent. Combined with the RNRB and spousal transfer, a couple leaving a £2M estate with a qualifying home and a 10%+ charity bequest can pay materially less IHT than a couple with no charitable plan. Last updated: May 3, 2026.