Estimate the UK inheritance tax your estate could face if you live abroad – including your home, UK and overseas assets, and UK pensions, which count towards your estate from 6 April 2027. It takes about a minute, and nothing you enter is stored.
Want to reduce the bill your family could face – across the UK and where you live now? Henry can show you your options.
Book a free call with HenryAn estimate for 2026-27, not personal advice. It assumes death this tax year with pensions included as they will be from 6 April 2027. It doesn’t cover business or agricultural relief, trusts, taper relief on gifts, double tax treaties or tax charged by the country you live in. Amounts in pounds.
How UK inheritance tax works for expats
UK inheritance tax is charged at 40% on the part of your estate above your tax-free allowances. Whether your assets abroad count depends on residence, not nationality: if you are a long-term UK resident – UK resident for at least 10 of the previous 20 tax years – your worldwide estate is in scope. If you are not, only your UK assets are. After you leave the UK, long-term residence continues for 3 to 10 years; our UK inheritance tax exit checker shows when it ends for you.
| Allowance or rule (2026-27) | Amount |
|---|---|
| Nil-rate band (tax-free allowance) | £325,000 – frozen until April 2031 |
| Residence nil-rate band (home left to children or grandchildren) | Up to £175,000 – reduced by £1 for every £2 the estate is over £2 million |
| Unused allowances of a late spouse or civil partner | Can be added – up to £1 million in total for a couple |
| Rate above the allowances | 40%, or 36% if you leave at least 10% of your net estate to charity |
| Gifts to a spouse or civil partner | Usually tax-free – but limited to £325,000 if they are not a long-term UK resident and you are |
| Unused pensions and pension death benefits | Count towards your estate from 6 April 2027 |
Ways to reduce the bill
- Make a will that works in every country where you hold assets, so your allowances and exemptions can be used. See wills for UK expats.
- Review your pensions before April 2027 – how and when you draw them, and who you nominate. See our UK pension advice for expats.
- Use your gift allowances, such as £3,000 a year and regular gifts out of surplus income. Larger gifts fall outside your estate after seven years.
- Think about timing if you have left the UK: after your long-term residence ends, your non-UK assets fall outside UK inheritance tax.
Our estate planning for expats page explains how Henry can help.
Questions about UK inheritance tax for expats
Do I pay UK inheritance tax if I live abroad?
On your UK assets, yes – UK property, bank accounts and investments stay within UK inheritance tax wherever you live. Your assets abroad are also included if you are a long-term UK resident, which can continue for up to 10 years after you leave.
How much can I leave tax-free?
Everyone has a £325,000 nil-rate band. Leaving your home to children or grandchildren can add up to £175,000. A widow or widower can add a late spouse’s unused allowances, so a couple can pass on up to £1 million.
Is my UK pension subject to inheritance tax?
From 6 April 2027, most unused pension funds and pension death benefits count towards your estate. Gifts to a spouse or civil partner, and to charity, stay exempt. Death-in-service benefits are not included.
Does the home allowance apply to a house abroad?
It can apply to a home outside the UK if that home is within UK inheritance tax – which means you must be a long-term UK resident. If you are not, your overseas home is outside UK inheritance tax altogether.
Will I pay inheritance tax twice?
Possibly not. The UK has inheritance tax treaties with a few countries, including France, the USA and Ireland, and gives credit for foreign tax in other cases. But the rules differ by country, so take advice.
Sources: gov.uk: Inheritance Tax; HMRC: inheritance tax if you are a long-term UK resident; HMRC: residence nil-rate band.
More free tools: fee calculator, inheritance tax calculator, UK inheritance tax exit checker, country comparison, money health check, frozen State Pension calculator, statutory residence test calculator. See them all on our free tools page.
Reviewed by Henry Temple-Baxter, CISI Level 4 qualified · Last updated 10 October 2026. This page is general information, not personal advice.