Total value of all homes (1)
Current value of investments (2)
Value of art, antiques, collectibles etc.
Value of life insurance (3)
Total of all outstanding mortgages (4)
Value of Loans owed TO you (5)
Business Assets (6)
The value of the business (7)
The proportion of the business owned by you. 55% as 55 (8)
The value of any buildings used by the business but owned by you (9)
Bequests (10)
Planned bequests of non business assets
Planned bequests of business assets (11)
Planned bequests of business buildings
Results
Total Value of Joint Estate
Total Value of Bequests on First Death to people other than spouse.
IHT due in respect of first death bequests (12)
Estate of surviving spouse
IHT on second death
Effect of simple tax minimisation - on first death passing the value of the Nil Rate Band, (made up of fully taxable assets plus any properties owned by the person and used by the business), plus any Business Assets that qualify for 100% Business Property Relief. (13).
Transfer on first death
IHT on first death
Estate at second death
IHT on second death

(1) - Main residence and additional homes.

(2) - Stocks, Shares, Deposits, National Savings etc. Includes investment property, whether or not rented out.

(3) - Ignore Life Insurance linked to a mortgage. Other life insurance may actually be outside of your estate and thus not count for Inheritance Tax purposes. If it isn't, we can probably adjust it so that it doesn't count for IHT. We need to see the documents to assess this.

(4) - Only list debts that are NOT covered by Life insurance.

(5) - If you have lent significant sums of money then this debt owed to you is an asset of your estate, and could create a tax liability. If you do not really expect repayment, (especially if it is a family matter), then consider turning the debt into a gift.

(6) - If you expect to sell the business in due course then leave this section blank and put the numbers into the investments section. This will reflect the likely position when the IHT bill arises.

(7) - Total value of business, if not sure, simply what you would sell it for as a going concern. Includes any buildings and plant owned by the company. Deduct from this figure any debts (mortgages, overdrafts etc).

(8) Proportional valuations are complex. 51% of a firm is worth more than 2% more than 49%. However for this exercise we assume simple proportionality.

(9) This only applies where the business has actively used all or most the building, (i.e. using one office in a block, or one shop in a row, may not suffice), and you have owned the property for at least two years.

(10) There is no Inheritance Tax on transfers to spouses. Only transfers to others need concern us.

(11) If you transfer only part of a business on first death it is possible that the surviving spouses portion may not qualify for 100% BPR. It will depend upon details beyond the scope of this calculator. For simplicity this calculator assumes that the spouses portion WILL get 100% BPR on her death.

(12) If your present planning could lead to a first death tax liability then it is essential to review your planning. Making gifts while alive could eliminate this liability, or at least reduce it.

(13) It is assumed that Buildings owned by the person and used by the business is indivisible, and so if the value of such buildings is more than that of the Nil Rate Band, a first death tax charge will arise. In some cases this will actually create a first death liability where there is otherwise none. This may still be worth paying if there is the risk that the business building, once held by the surviving spouse, could, in her hands, be reclassified as an investment property, and thus lose the 50% Business Property Relief that would apply on first death. As you can see the whole area of Business Assets and Properties used in business is a very complex one. Seek advice.