You've inherited money or property
You don't pay tax on receiving an inheritance. See the tax if you sell it, let it out, move in or keep it, and how long you have to pass it on instead.
Your answer
Enter what you inherited, its value and your income to see the tax on each choice.
About this calculator
For anyone who has inherited a house, shares or money in the UK and wants to know what tax follows: on receiving it, and on each thing they might do with it.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
Inheritance tax is the estate's, paid before anything is shared out, so you pay nothing on receiving it.
If you sell, Capital Gains Tax is due on the rise since the death: the sale price less the probate value and your costs, after the £3,000 tax-free allowance, at 18% or 24%.
If you live there, the time it's your main home (plus the last 9 months) is tax-free when you sell. If you let it, the rent less costs is added to your income and taxed.
Worked example
You'd pay about £2,264 Capital Gains Tax selling for £320,000, on the £15,000 rise since the death.
2026/27 tax year · a house, selling · worth £320,000 · income £40,000 · 8 months since the death
| Tax on receiving it (any inheritance tax was paid by the estate) | £0 |
|---|---|
| Sale price | £320,000 |
| Less its value at the death (probate value): your cost | − £300,000 |
| Less selling costs and improvements | − £5,000 |
| Gain since the death | £15,000 |
| Tax-free allowance | − £3,000 |
| At 18% (inside the basic-rate band) | £10,270 |
| At 24% | £1,730 |
| Capital Gains Tax on the sale | £2,264 |
Worked out using 2026/27 Capital Gains Tax and income tax rates, with the value at death as your cost.
Questions people ask
Do I pay inheritance tax on what I inherit?
Not normally. Any inheritance tax is worked out on the whole estate and paid by the executors before it's shared out. What reaches you is yours, tax-free.
What is a deed of variation?
A signed document that changes who inherits, made within 2 years of the death. If it says so, it's treated as if the person who died had left it that way, so it isn't a gift from you. People use it to pass an inheritance straight to their children.
Do I have to report selling an inherited house?
If there's Capital Gains Tax to pay, you report and pay within 60 days of completion, through HMRC's online service for property sales. If the gain is inside your tax-free allowance, you don't need to.
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