Digital asset Inheritance Tax calculator (UK)
Estates that include cryptoassets, NFTs and other digital property are taxed under exactly the same Inheritance Tax rules as any other estate. This calculator separates the digital element from the rest so you can see what proportion of your estate is digital, what the headline IHT figure looks like and how a charitable legacy changes it. The Property (Digital Assets etc) Act 2025 confirms digital property can be left in a will in England and Wales — the practical challenge is valuation and executor access, not legal recognition.
- Digital assets in estate
- £50,000
- Estimated IHT
- £0
- Effective rate
- 0.0%
| Digital assets sub-totalCryptoassets plus NFTs and other digital property. | £50,000 |
|---|---|
| Other (non-digital) estate | £600,000 |
| Gross estate | £650,000 |
| Nil-rate band£325,000 per person, plus transferred from spouse. | £650,000 |
| Residence nil-rate band (before taper)£175,000 per person if home goes to direct descendants. | £350,000 |
| RNRB taper (estates over £2,000,000)£1 lost for every £2 above £2m. | — |
| Total tax-free allowance | £1,000,000 |
| Charitable legacyBelow 10% of the chargeable estate — standard 40% rate applies. | £0 |
| Chargeable estateCharged at 40%. | £0 |
| Net to beneficiaries (after IHT and charity) | £650,000 |
| Inheritance Tax due | £0 |
Valuing digital assets is the hardest practical step. HMRC requires the market value at the date of death; for crypto, take a reputable spot price; for NFTs and tokens with thin markets, the realistic realisable amount can be well below floor price. The 36% reduced-rate check here is a simplified approximation of the IHTA 1984 Schedule 1A baseline amount test — the full statutory test uses estate components and may differ where there are multiple components, gifts with reservation, settled property or an election to merge components. This calculator does not model gifts in the seven years before death, business or agricultural relief, trusts, foreign-situs assets, or the April 2027 inclusion of most unused defined-contribution pension funds within IHT. The Property (Digital Assets etc) Act 2025 confirms digital property can be left in a will in England and Wales — but the bigger practical problem is executor access. See the master guide on digital assets in your will for drafting and access guidance.
How it works
- Add up the GBP value of your cryptoassets at the date you're modelling — for an estate at death, HMRC requires market value on the date of death. Use a reputable price source.
- Add a separate figure for NFTs and other digital property (tokenised carbon credits, in-game items, domain portfolios). For thin markets, use the realistic realisable amount, not the floor price.
- Add your non-digital estate: property, savings, investments and possessions, less debts and funeral costs.
- Apply the £325,000 nil-rate band, plus any % transferred from a deceased spouse, plus the £175,000 residence nil-rate band if your home passes to direct descendants (tapered by £1 for every £2 the gross estate exceeds £2m).
- If your charitable legacy meets the simplified 10% baseline test (Schedule 1A IHTA 1984), the rate on the rest drops from 40% to 36%.
Common questions
- Does the Property (Digital Assets etc) Act 2025 reduce my IHT bill?
- No. The Act confirms that cryptoassets, NFTs and other digital property can be the object of personal-property rights in England and Wales — it removes a doctrinal obstacle around inclusion in the estate. IHT rates, allowances and reliefs are unchanged.
- Which date's price do I use for crypto in the estate?
- HMRC requires market value at the date of death. Pick a reputable price source (e.g. a recognised exchange's GBP pair at the close of the relevant day) and document it. For deeply illiquid tokens, the value is what a willing buyer would actually pay — which can be well below 'floor' or 'listed' prices.
- Are NFTs definitely taxed?
- Yes — HMRC treats NFTs as property like any other digital asset for IHT purposes. The challenge is realistic valuation: many NFTs have very thin secondary markets and the floor price often overstates what the estate can realise.
- Does the 36% reduced rate apply if I leave 10% of my crypto to charity?
- It is not a per-asset test. The statutory rule (Schedule 1A IHTA 1984) compares the charitable gift to the 'baseline amount' for the relevant component of the estate. Broadly: the gift to charity must be at least 10% of what would otherwise be taxed on that component. This calculator applies a simplified single-component version of the test — it is directionally correct for an ordinary estate but the full statutory mechanics matter once there are multiple components, gifts with reservation, settled property, or an election to merge components.
- What about gifts of crypto in my lifetime?
- Lifetime gifts of cryptoassets follow the same seven-year IHT rule as cash or shares. The gift is also a disposal for Capital Gains Tax — meaning the donor crystallises a gain or loss at GBP market value on the day of the gift. This calculator does not model lifetime gifts.