Illustrative tool
April 2027 deadlineFrom April 2027, unused UK pension funds fall inside the IHT estate for the first time. Estimate your exposure below — in under 60 seconds.
Illustrative only — not financial advice. No data stored or transmitted.
Your estate
Adjust the inputs below to estimate your IHT position.
Property, savings, investments, and other assets (excluding pensions).
From 6 April 2027, unused pension funds will be included in your IHT estate for the first time.
RNRB (£175,000) applies when left to direct descendants.
Doubles all nil-rate allowances. Taper threshold rises to £4m.
↓ Adjust inputs below to update
Estimated IHT liability
£400,000At 40% on the taxable estate above your allowances.
This is the estimated amount that would pass to HMRC, not your beneficiaries.
How this is calculated
Your estate may face a significant IHT liability.
Gifting strategies, trust structures, and domicile review can all reduce this — but they take time to work. A specialist can model what is still open to you.
See what may be possible for £400,000 — request a free introduction →No commitment. No fees. Every submission reviewed manually.
Illustrative only - not financial advice.
Concerned about your IHT exposure?
Domicile, gifting, and estate structure can all affect the real number. A specialist can model your actual position.
Complimentary introduction — no commitment, no fees, your details are never auto-forwarded.
Questions
What is UK inheritance tax and does it apply to expats?
UK inheritance tax (IHT) is charged at 40% on the value of a deceased person's estate above the nil-rate band (currently £325,000). For expats, whether and how IHT applies depends heavily on domicile — not just residence. Even if you have lived abroad for many years, you may still be subject to UK IHT on worldwide assets if HMRC considers you UK-domiciled.
What is the nil-rate band and the residence nil-rate band?
The nil-rate band (NRB) is £325,000 per person — assets up to this value pass free of IHT. The residence nil-rate band (RNRB) is an additional threshold of up to £175,000, available when a residential property is passed to direct descendants. Married couples and civil partners can combine both allowances, potentially sheltering up to £1 million.
How does domicile affect my UK inheritance tax position?
Domicile is a legal concept distinct from tax residence or nationality. If you are considered UK-domiciled (or deemed UK-domiciled under the 15-of-20-year rule), your worldwide assets are subject to UK IHT. If you are non-UK domiciled, only UK-situated assets are in scope. Establishing a domicile of choice in another country is possible but involves meeting a high evidential threshold.
Can expats reduce their inheritance tax exposure?
Various strategies exist, including gifting assets during your lifetime (subject to the seven-year rule), using trusts, Business Relief qualifying assets, or reviewing domicile status with legal advice. The right approach depends on your specific situation, family structure, and jurisdictions involved. An estate planning specialist can help you assess the options.
More questions? Visit our full FAQ
Strategies involving gifts, domicile review, and estate structure take time to work properly. A specialist can help you understand what is still available before the rules change.