Free Estate Valuation Calculator for Inheritance Tax (IHT) Planning – Instant & Accurate Results
Introduction – Why Estate Valuation Matters for IHT
When someone dies, the estate must be valued to determine whether Inheritance Tax (IHT) is payable. This is a legal requirement before probate can be granted. Errors in valuation can lead to delays, unexpected tax bills, or HMRC investigations.
An accurate valuation ensures:
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Compliance with HMRC IHT rules.
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Correct use of allowances like the Nil Rate Band (NRB) and Residence Nil Rate Band (RNRB).
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Claiming valuable reliefs such as Business Property Relief (BPR) and Agricultural Property Relief (APR).
That’s why CIGMA Accounting created a free Estate Valuation Calculator – designed by UK tax advisors to give executors, families, and high-net-worth individuals an accurate, instant estimate of estate value and potential IHT liability.
Expert Tip: If the estate includes multiple properties, valuable art or jewellery, private company shares, or overseas assets, use the calculator as a first step, then book a review with our team. Early advice can prevent six-figure IHT bills.
What Is an Estate Valuation Calculator?
An estate valuation calculator helps determine the total value of a person’s assets and liabilities at the time of death or for lifetime planning.
It considers:
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Property values (UK and overseas).
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Financial assets – savings, investments, pensions, ISAs, crypto.
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Chattels – jewellery, art, cars, antiques.
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Business interests – shares, partnerships, goodwill.
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Liabilities – mortgages, loans, credit cards.
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Gifts in the last 7 years – relevant for the 7-Year Rule.
Unlike a basic property valuation tool, our calculator integrates IHT allowances, exemptions, and reliefs to show your net taxable position.
When You Might Need One
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Probate applications – to provide the court with accurate figures.
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IHT planning – to reduce tax through allowances, gifting, and structuring.
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Business succession – to claim BPR effectively.
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Cross-border estates – to assess double-tax risks.
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High-value estates – to manage exposure before death.
How to Use Our Estate Valuation Calculator
Step-by-Step Instructions
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Input property values – use professional RICS valuations for accuracy.
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Add other assets – bank balances, shares, investments, pensions.
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Include liabilities – mortgages, loans, credit cards.
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Add gifts made in the last 7 years – note dates and amounts.
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Review the results – see gross value, net value, and estimated IHT liability.
What the Results Mean
The calculator compares your net estate value to the NRB (£325k) and RNRB (£175k) thresholds, then estimates the taxable amount and potential IHT at 40%.
7-Year Rule → Gifting & 7-Year Rule guide
Expert Tip: Keep an evidence pack: property valuations, investment statements, gift records, and debt confirmations. HMRC enquiries are easier to resolve when your documentation is complete.
Case Study 1 – Middle-Class Family Avoids £148k IHT
A widow with an £880,000 estate (home £600k, investments £230k, chattels £10k, debt £-10k) assumed she would owe £148k IHT.
CIGMA confirmed she could use her late husband’s unused NRB and RNRB, bringing allowances to £1m. This reduced her taxable estate to £0 and saved £148k.
Inheritance Tax planning → IHT Planning Service
Key Inheritance Tax Thresholds
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NRB – £325,000 per person.
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RNRB – £175,000 per person (if home left to direct descendants).
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Transferable allowances – spouses/civil partners can combine to £1m.
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Tapering – RNRB reduced for estates over £2m.
Internal link opportunities:
Lifetime gifting strategies → Gifting Strategy page
Estate tax advisory → Estate Tax Advisory
HMRC Rules for Estate Valuation
Open Market Value
HMRC requires assets to be valued at the price they might reasonably fetch on the open market. For property, a RICS surveyor is recommended.
Chattels vs Fixtures
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Chattels – movable personal possessions such as artworks or antiques.
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Fixtures – items permanently attached to the property.
Chattels Valuation → Chattels Valuation Guide
Gifts and the 7-Year Rule
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Gifts to individuals are typically Potentially Exempt Transfers (PETs).
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Gifts into trusts are often Chargeable Lifetime Transfers (CLTs).
Expert Tip: Regular gifts from surplus income may be exempt, but you must keep detailed records.
Case Study 2 – Business Owner Saves £400k with BPR and APR
A business owner’s estate was worth £2.6m: trading company shares (£1.1m), farm land/buildings (£700k), home (£600k), investments (£250k), debts (£50k).
By applying BPR at 100% for qualifying trading shares and APR for eligible agricultural property, CIGMA sheltered £1.8m from IHT. This reduced exposure by approximately £400k.
Business & Agricultural Property Relief – What to Know
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BPR applies to certain business assets and unquoted shares.
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APR applies to agricultural land and property.
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Both reliefs require careful evidence and eligibility checks.
Expert Tip: Not all business assets qualify. Investment-heavy companies may fail BPR tests. Get a pre-mortem review.
Common Mistakes to Avoid
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Ignoring liabilities.
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Using outdated property valuations.
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Undervaluing chattels.
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Missing gifts in the last 7 years.
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Not applying transferable NRB/RNRB.
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Assuming all business assets qualify for BPR.
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Overlooking overseas assets.
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Forgetting pensions or life insurance.
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Not claiming spouse exemptions.
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Submitting figures without supporting evidence.
Why Use CIGMA’s Calculator
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Built by specialised CIGMA Accounting tax advisors.
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Includes all asset classes and liabilities.
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Designed for HMRC compliance.
From Calculator to Strategy – How CIGMA Can Help
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Pre-probate review.
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IHT mitigation strategies.
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Property and business structuring.
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Cross-border estate planning.
Expert Tip: If RNRB tapering applies, strategic gifting or restructuring can reduce taxable value below taper thresholds.
Extended FAQs
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Do I need professional valuations? – Yes, for property and high-value assets.
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Does the calculator work for lifetime planning? – Yes.
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How are foreign assets treated? – UK-domiciled estates usually include worldwide assets.
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Will HMRC accept the calculator output? – Only with supporting valuations.
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What is the NRB and RNRB? – Tax-free thresholds explained above.
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What’s the 7-Year Rule? – Gifts drop out of IHT after 7 years.
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Do business owners qualify for IHT relief? – Possibly, with BPR/APR.
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Can life insurance help cover IHT? – Yes, if placed in trust.
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We’re over £2m—do we lose RNRB? – Tapering applies; planning may help.
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How often should I refresh valuations? – At least annually for planning.
Call to Action
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Use the Estate Valuation Calculator now.
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Book a free consultation with our IHT experts.
