Quilter 7 What would my IHT liability be? The following table shows how much tax your non-exempt beneficiaries or executors would have to pay, assuming both your nil-rate band and residence nil-rate bands are available in full and you do nothing to reduce your IHT liability, based on 2020/21 tax year figures. Calculating your potential IHT liability Assets Estimated value Value of main home £ Other properties, business property/land £ Car(s), boat, etc. £ Household contents and personal effects £ Bank and building society accounts £ Investments (stocks and shares, bonds, offshore accounts, ISAs) £ Life insurance policies (if not under trust) £ Pensions lump sum (if not under trust) £ Other assets including previous gifts £ Sub total £ Less any liabilities: Mortgage(s) £ Loans, hire purchase, credit cards £ Sub total £ Calculating your IHT liability Subtract available nil-rate band, taking into account any transferrable unused allowance from deceased spouse or civil partner and any residence nil-rate band available to you -£ Subtract any exemptions ** -£ Balance £ X 40% (potential liability) ** See pages 11 and 12 for more details on exemptions and reliefs. If your balance is positive and you do nothing to mitigate your IHT liability, you may be liable to pay 40% IHT on this amount. Estate value Amount taxable IHT payable at 40% £400,000 £0 £0 £500,000 £0 £0 £600,000 £100,000 £40,000 £700,000 £200,000 £80,000 £800,000 £300,000 £120,000 £900,000 £400,000 £160,000 £1,000,000 £500,000 £200,000 There are steps you can take to help reduce your IHT bill, as detailed on the following pages.