Nil Rate Band Calculator
Calculate your available nil rate band allowance, including any transferable nil rate band from a deceased spouse or civil partner.
Key Figures for 2026/27
- Individual NRB: £325,000
- Married couple / civil partners: up to £650,000
- Combined with RNRB: up to £1,000,000
- Frozen until: April 2030
- IHT rate above threshold: 40%
What is the Nil Rate Band?
The nil rate band (NRB) is the threshold below which no inheritance tax is charged. For the 2025/26 and 2026/27 tax years, the NRB is £325,000 per person. Any estate value below this threshold passes to beneficiaries free of inheritance tax. Anything above it is normally taxed at 40%.
The NRB has been frozen at £325,000 since April 2009 and will remain frozen until at least April 2030, as confirmed in the Autumn Budget 2024. Because the threshold has not risen with inflation, more estates are drawn into the inheritance tax net each year — a process known as fiscal drag.
The NRB applies to the total value of a person's estate — property, savings, investments, and possessions — minus any debts and liabilities. It is separate from the residence nil rate band (RNRB), which provides an additional £175,000 when a home passes to direct descendants.
Understanding your available nil rate band is the first step in estimating any inheritance tax liability. Use the calculator below to see your total tax-free allowance, or try our full IHT calculator for a comprehensive analysis including gifts, reliefs, and timeline projections.
Calculate Your Nil Rate Band
NRB Calculator
Select your situation to see your total IHT-free allowance. All calculations run in your browser — no data is sent or stored.
Your Allowances
For a comprehensive calculation including gifts, reliefs, pensions, and timeline projections try our full IHT calculator.
How the Transferable Nil Rate Band Works
When someone dies, any unused portion of their NRB can be transferred to their surviving spouse or civil partner. This was introduced in October 2007 but applies retrospectively to all earlier deaths.
The transfer is based on the percentage unused, not the absolute amount. This is important because the NRB may have been different when the first spouse died. The percentage is applied to the NRB in force at the second death (currently £325,000).
Example: If your spouse died in 2005 when the NRB was £275,000 and left £137,500 to non-exempt beneficiaries, they used 50% of their NRB. You can claim an additional 50% of today's NRB: 50% × £325,000 = £162,500.
The claim must be made to HMRC using form IHT402, which is normally submitted as part of the probate process alongside the IHT400 return. You can claim transferred NRB from more than one deceased spouse, but the total additional NRB is capped at 100% of the current threshold (£325,000).
If the first spouse left everything to the surviving spouse — the most common arrangement — 100% of their NRB was unused and can be fully transferred. See our married couples planning guide for detailed strategies.
Nil Rate Band by Tax Year
The table below shows how the NRB has changed over the years. This is useful for calculating the percentage of NRB used at a first death when claiming the transferable NRB.
| Tax Year | Nil Rate Band | Notes |
|---|---|---|
| 2009/10 – 2030/31 | £325,000 | Frozen |
| 2008/09 | £312,000 | |
| 2007/08 | £300,000 | Transferable NRB introduced |
| 2006/07 | £285,000 | |
| 2005/06 | £275,000 | |
| 2004/05 | £263,000 | |
| 2003/04 | £255,000 | |
| 2002/03 | £250,000 | |
| 2001/02 | £242,000 | |
| 2000/01 | £234,000 | |
| 1999/00 | £231,000 | |
| 1998/99 | £223,000 | |
| 1997/98 | £215,000 | |
| 1996/97 | £200,000 |
For deaths before 1996/97, contact HMRC or a solicitor for the applicable NRB. The nil rate band has existed in various forms since the introduction of estate duty.
Worked Examples
Single Person, No Residence Allowance
John's estate is valued at £450,000. He has savings of £300,000 and possessions worth £150,000. He does not own a qualifying property for RNRB purposes.
NRB: £325,000
Taxable amount: £450,000 − £325,000 = £125,000
Widow with Full Transferred NRB and Residence Allowance
Margaret's estate is valued at £900,000 (home £500,000, savings £350,000, possessions £50,000). Her late husband left everything to her, so 100% of both his NRB and RNRB were unused. The home passes to their children.
Her NRB: £325,000 + Transferred NRB: £325,000 = £650,000
Her RNRB: £175,000 + Transferred RNRB: £175,000 = £350,000
Total allowance: £1,000,000
Widower with Partial NRB Transfer
Robert's late wife died in 2004 when the NRB was £263,000. She left £131,500 to her siblings, using 50% of her NRB. Robert's estate is valued at £700,000 (home £400,000, savings £250,000, possessions £50,000). The home passes to his children.
His NRB: £325,000 + Transferred NRB (50%): £162,500 = £487,500
His RNRB: £175,000 + Transferred RNRB (50%): £87,500 = £262,500
Total allowance: £750,000
NRB and Upcoming Tax Changes
While the NRB itself remains frozen at £325,000 until April 2030, two upcoming reforms will affect how much of an estate ends up above the threshold:
April 2026: Agricultural property relief (APR) and business property relief (BPR) will be capped at £1 million for 100% relief. Assets above this cap receive only 50% relief. This does not change the NRB directly, but estates with significant business or agricultural assets may find a larger portion becomes taxable.
April 2027: Unused pension funds will be included in the estate for IHT purposes. This is the major change. A £325,000 pension pot added to an estate that was previously just under the NRB would push it well into taxable territory.
Fiscal drag: With the NRB frozen and asset values rising, HMRC estimates that the number of estates paying IHT will increase significantly by 2030. Even estates that are currently below the threshold should plan ahead. Run a full calculation with our IHT calculator to see how these changes affect you.
Frequently Asked Questions
What is the nil rate band for 2026/27?
The nil rate band for the 2026/27 tax year is £325,000. This threshold has been frozen since 2009 and will remain at this level until at least April 2030, as confirmed in the Autumn Budget 2024.
Can I transfer my spouse's nil rate band?
Yes. Any unused portion of your deceased spouse's or civil partner's nil rate band can be transferred to you. The transfer is based on the percentage that was unused at the time of their death, applied to the current NRB of £325,000. If your spouse left everything to you, 100% can be transferred, giving you a combined NRB of £650,000.
How do I claim the transferable nil rate band?
The claim is made to HMRC using form IHT402, which is submitted alongside the main inheritance tax return (IHT400) during the probate process. You will need details of the first death including the estate value and how assets were distributed. There is no time limit for the claim if IHT is not due, but if IHT is payable, the claim should be made within two years of the second death.
Is the nil rate band the same as the inheritance tax threshold?
Yes. The nil rate band and the inheritance tax threshold refer to the same thing — the amount below which no inheritance tax is charged (currently £325,000). The term 'nil rate band' is the official HMRC terminology because the tax rate on this band is 0% (nil).
What is the difference between NRB and RNRB?
The nil rate band (NRB) of £325,000 applies to all estates regardless of what assets they contain or who inherits them. The residence nil rate band (RNRB) is an additional £175,000 that only applies when a qualifying home passes to direct descendants such as children or grandchildren. Together they can provide up to £500,000 per person or £1,000,000 for a married couple. See our RNRB calculator for the full eligibility and taper detail.
Does the nil rate band apply to gifts made before death?
Gifts made within seven years of death may use up some of your nil rate band. Gifts are applied against the NRB in chronological order. If total gifts in the seven years before death exceed £325,000, the excess is taxed at 40% (with taper relief applying to gifts made three to seven years before death). See our guide to the seven-year rule.
Related Calculators
Get Your Full Estate Tax Picture
The nil rate band is just one part of the calculation. Our comprehensive IHT calculator covers NRB, RNRB, gifts, reliefs, pensions, and upcoming 2026/2027 tax changes — with a professional PDF report.
Try the Full CalculatorThis calculator is for general information only and does not constitute financial, tax, or legal advice. Estate Map is not authorised or regulated by the Financial Conduct Authority. Inheritance tax rules are complex and individual circumstances vary significantly. Always consult a qualified solicitor, tax adviser, or financial planner before making estate planning decisions.