Inheritance tax (IHT) is no longer a concern only for the ultra-wealthy. Due to property price inflation and "fiscal drag"—where tax thresholds remain frozen while asset values rise—thousands of UK families are being pulled into the IHT trap.
According to the latest OBR inheritance tax forecasts, government receipts from IHT are projected to reach £14.3 billion by 2029–30, nearly doubling from 2023 levels. As estate planning expert Ian Dyall observes: "Frozen tax bands are a stealth tax on the middle class, rendered futile against the tide of rising property values".
Use our interactive calculator below to model your potential liability and understand how strategic planning can protect your estate.
Estimate the potential IHT liability for an estate.
Estimated IHT Due (at 40%)
£0
Functionality: Inputs for house value, cash, investments, and debts. Includes a toggle for "passing home to direct descendants?" to apply the RNRB.
To accurately model your estate, our inheritance tax calculator accounts for the two primary "nil-rate bands" available to UK residents:
The standard nil-rate band (£325,000): This is the amount every individual can pass on tax-free. It has been frozen at this level since 2009.
The residence nil-rate band (£175,000): An additional allowance available when you pass a main residence to direct descendants (children or grandchildren).
For a married couple, these combined thresholds can reach £1 million. However, any value exceeding these limits is typically taxed at a rate of 40%.
Expert tip: For a detailed breakdown of how to value non-cash assets like jewellery or joint accounts, refer to the HMRC estate valuation rules.
From 6 April 2026, new legislation introduces significant caps on Business Relief (BR). Under these rules, 100% IHT relief will be capped at the first £2.5 million of combined business and agricultural assets. Any value above this threshold will receive only 50% relief, resulting in an effective tax rate of 20%.
Crucially, AIM-listed shares will move to a flat 50% relief status regardless of whether they fall within this cap.
"The 2026 reforms create a genuine 'cliff edge' for investors. We're moving from a period of unlimited relief to one of strict caps, making the efficiency of your investment vehicle more important than ever. If you're over the threshold, you're looking at an effective 20% tax rate where there used to be zero." — Tom Britton, Co-founder
"Our data shows that 90% of un-diversified EIS portfolios fail to outperform the market. In a power-law system, you don't 'pick' winners; you build a portfolio large enough to ensure you don't miss them. We invest in 30+ startups every year specifically to capture that fat tail." — Graham Schwikkard, CEO
Traditional planning often relies on "gifting," but this requires you to survive seven years for the gift to leave your estate. For those seeking a faster solution, the Enterprise Investment Scheme (EIS) offers a powerful alternative via business relief:
Speed of relief: Shares in EIS-qualifying companies may qualify for Business Relief once held for two years. Where relief applies, their value can fall outside the estate for inheritance tax. Qualifying status is not guaranteed and can be lost
Tax efficiency: For a £10,000 investment, the combination of 30% upfront income tax relief and the 40% IHT saving significantly reduces the "net cost" of the investment, providing a massive buffer against potential market volatility.
Investing in early-stage companies is high-risk. SyndicateRoom CEO Graham Schwikkard found that " Monte Carlo simulations on portfolio size reveal a "power law" in UK venture capita. In short, a tiny fraction of companies generate the vast majority of returns.
"Our data shows that 90% of un-diversified EIS portfolios fail to outperform the market. In a power-law system, you don't 'pick' winners; you build a portfolio large enough to ensure you don't miss them. We invest in 30+ startups every year specifically to capture that fat tail." — Graham Schwikkard, CEO
To ensure your IHT strategy is robust, we built the Access EIS Fund. Rather than "picking winners," we use a data-led model to build a highly diversified portfolio of 30+ startups, increasing the statistical probability of capturing market-leading growth while securing your IHT exemption.
Deep dive: Read our full guide to EIS inheritance tax relief for a technical breakdown of the two-year rule.
Consult the data: Review the OBR IHT forecasts to see the trends impacting UK estates.
Secure your allocation: Explore how ourAccess EIS Fund can provide a time-efficient, data-backed solution to your IHT liability before the 2026 changes take effect.
Please note: our office hours are weekdays, 9.30am - 5.30pm.