What a £800,000 estate pays in inheritance tax for 2026/27, worked out for the two most common situations. England & Wales.
On a £800,000 estate a single person leaving a home to direct descendants would face £120,000 of inheritance tax — but a married couple or civil partners, on the second death, can combine both of their allowances up to £1,000,000, which usually clears an estate of this size entirely. Whether tax is due comes down to who owns what and how the estate passes.
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.
Spouses and civil partners pass unused allowance to each other, lifting the combined headroom to £1,000,000.
Gifts made within seven years of death can use up the nil-rate band first, increasing the tax on what remains.
Leaving 10% or more of the net estate to charity cuts the 40% rate to 36% on the rest.
Most unused pension funds join the taxable estate from 6 April 2027, which can push a £800,000 estate into a higher tax figure.
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