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How much inheritance tax on a £400,000 estate?

What a £400,000 estate pays in inheritance tax for 2026/27, worked out for the two most common situations. England & Wales.

✓ 2026/27 thresholds · verified against GOV.UK 22 Aug 2026
The answer
Single person · home to children
No tax to pay
Allowance £500,000
Allowance applied£500,000
Taxable above allowance£0
Inheritance tax (40%)£0
Family keeps£400,000
Married couple · second death
No tax to pay
Combined allowance £1,000,000
Allowance applied£1,000,000
Taxable above allowance£0
Inheritance tax (40%)£0
Family keeps£400,000

A £400,000 estate that includes a home passing to children or grandchildren sits within a single person's £500,000 allowance, so there is usually no inheritance tax to pay at all. The allowance is the £325,000 nil-rate band plus the £175,000 residence nil-rate band, and it applies before any tax is charged.

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What changes the tax on a £400,000 estate

Whether a home passes to children.

The £175,000 residence nil-rate band only applies when a qualifying home goes to direct descendants. Without it, a single person's allowance drops to £325,000.

Married or single.

Spouses and civil partners pass unused allowance to each other, lifting the combined headroom to £1,000,000.

Gifts in the last seven years.

Gifts made within seven years of death can use up the nil-rate band first, increasing the tax on what remains.

Charity.

Leaving 10% or more of the net estate to charity cuts the 40% rate to 36% on the rest.

Pensions (from April 2027).

Most unused pension funds join the taxable estate from 6 April 2027, which can push a £400,000 estate into a higher tax figure.

FAQ

Questions about a £400,000 estate

On a £400,000 estate in 2026/27, a single person leaving a home to direct descendants would pay £0 in inheritance tax (their allowance is £500,000).

A married couple or civil partners, on the second death, can combine allowances up to £1,000,000 and would pay £0. Tax is charged at 40% on the value above the available allowance.
Everyone has a £325,000 nil-rate band, frozen until April 2031.

A further £175,000 residence nil-rate band applies when a home passes to children or grandchildren — taking a single person's allowance to £500,000. Married couples and civil partners can pass unused bands to each other, so up to £1,000,000 can be left tax-free.
No. The 40% rate only applies to the part of the estate above the available allowance, not the whole estate.

Everything within the nil-rate band and residence nil-rate band is taxed at 0%.
Inheritance tax on other estate sizes
£100,000 estate£200,000 estate£325,000 estate£450,000 estate£500,000 estate£600,000 estate£750,000 estate£800,000 estate£1,000,000 estate£1,250,000 estate£1,500,000 estate£2,000,000 estate£2,500,000 estate£3,000,000 estate
Back to the full Inheritance Tax Calculator
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Figures are indicative and based on the standard scenarios described, using England & Wales rules for 2026/27. They are not a calculation of tax actually due. Estates with trusts, business or agricultural relief, foreign assets, or gifts with reservation may differ materially. This is informational only and not regulated tax advice — a solicitor or chartered tax adviser should review any estate before submission.
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