Inheritance Tax Calculator (UK and India)
Estimate inheritance tax on an estate under UK rules, or note the position for India where most inheritances are untaxed.
What does the undefined do?
It estimates inheritance tax on an estate, applying UK rules with the nil rate band and spouse exemption, and flags the different position in India.
- Inputs: the country, the estate value, whether it passes to a spouse and any charitable gift.
- Output: the estimated inheritance tax and the share going to heirs.
- Method: the estate minus exempt transfers, charity and the nil rate band, then taxed at 40 percent for the UK.
Quick answer
A UK estate of 500,000 with no spouse exemption leaves 175,000 above the 325,000 nil rate band, giving about 70,000 of inheritance tax. India charges no inheritance tax on inherited assets.
What This Calculator Really Does
Inheritance tax is one of the most country-specific taxes there is. In the UK, an estate pays 40 percent above the 325,000 nil rate band, subject to a spouse exemption that can remove the charge entirely, a residence nil rate band of up to 175,000 when a home passes to direct descendants, and a reduced 36 percent rate when at least ten percent goes to charity. In India, by contrast, there is no inheritance tax on inherited assets, although capital gains can arise when the inherited asset is later sold, so cost records matter. This tool applies the headline UK rule and the India position so families can see the rough scale before taking advice. Real calculations involve lifetime gifts, trusts, business relief and the order of deaths, all of which can change the answer dramatically.
The formula it uses
UK: taxable = estate minus charitable gift minus 325,000, floored at zero; tax = taxable x 40 percent. Transfers to a spouse are exempt and give zero. India: inheritance tax is zero.
Worked example with real numbers
A UK estate of 500,000 with no spouse exemption and no charity has taxable value of 175,000 after the nil rate band, so tax is about 70,000. The same estate left entirely to a spouse gives zero.
Common mistakes to avoid
- Forgetting the residence nil rate band, which can shelter a further amount when a home passes to direct descendants.
- Assuming India taxes inheritance, when it does not, though capital gains can apply on later sale.
- Ignoring lifetime gifts made in the seven years before death, which can be brought back into the calculation.
Assumptions and limitations
The UK nil rate band is set at 325,000 and the residence nil rate band, lifetime gifts, trusts, business relief and the reduced charity rate are not modelled. India is treated as having no inheritance tax.
Disclaimer
This is an educational estimate, not tax or legal advice. Inheritance tax rules are complex and change, so take advice from a qualified tax professional before relying on any figure.
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Frequently Asked Questions
How is the undefined calculated?
For the UK, charitable gifts and the nil rate band are subtracted from the estate and the remainder is taxed at 40 percent; transfers to a spouse are exempt. India returns zero inheritance tax. The steps panel shows the logic.
What do I need to use the undefined?
The country, the estate value, whether it passes to a spouse and any percentage left to charity.
What does the result from the undefined show?
The estimated inheritance tax and a split showing how much reaches the heirs.
Does India have inheritance tax?
No. India abolished estate duty in 1985 and does not tax inherited assets as such, though capital gains tax can apply when you sell an inherited asset later.
What is the UK nil rate band?
It is the amount an estate can pass on free of inheritance tax, currently 325,000. A residence nil rate band of up to 175,000 can apply when a home passes to direct descendants.
Is the undefined really free?
Yes — 100 percent free, no sign-up, and everything runs in your browser.
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