IHT400help.com
A free friendly guide to help explain the IHT400 form
Inheritance Tax account — for deaths in England & Wales
Sorting out Inheritance Tax after losing someone can feel overwhelming. This page walks you through the official HMRC form IHT400 (the April 2026 version) box by box. It looks like the paper form, so you can keep it open next to your paperwork.
This page was created to help other families who are going through this same issue. In loving memory of David Rainford.
Tap or click any numbered question — a friendly explanation pops up telling you what it means, what HMRC actually wants, where to find the information, and ways to ensure you pay the correct amount of tax and no more.
£325,000tax-free ‘nil rate band’ (frozen to April 2031)
+ up to £175,000where a qualifying home, or downsizing value, is closely inherited by direct descendants
40%tax above the tax-free amounts (36% if 10%+ goes to charity)
6 monthsto start paying the tax (interest runs after that — currently 7.75%)
12 monthsto send in the IHT400 itself
A friendly note before we start: this guide is here to explain and to help you claim
everything you’re entitled to — it isn’t legal or tax advice, and I’m not a solicitor. It reflects the rules for
deaths in 2026 (checked against gov.uk on 11 July 2026). For a large, unusual or business-heavy estate, an hour
with a STEP-qualified solicitor or a tax adviser usually pays for itself many times over. And HMRC’s own
helpline is genuinely helpful: 0300 123 1072.
First things first — do you even need to fill in IHT400?
Many families don’t. If the estate counts as an “excepted estate”, you skip this whole form and simply give the estate figures as part of the probate application. The form depends on where the grant is needed: England and Wales use PA1P or PA1A; Scotland uses C1; Northern Ireland uses NIPF1 or NIPF2 plus NIPF7. Different forms can apply to non-long-term UK residents and special grants. That’s a big saving in time — so it’s worth two minutes to check. Answer the questions below, one section at a time, and I’ll tell you where you stand.
Important definitions used in this checker
- Gross estate value for the excepted-estate test
- The total of solely owned assets, the deceased’s share of jointly owned assets, relevant trust assets, specified lifetime transfers and specified exempt transfers — all at open-market value and before deducting any debts, exemptions or reliefs. This is not simply the value of assets owned solely by the deceased.
- Net chargeable estate
- The estate value after qualifying liabilities and permitted spouse, civil-partner and/or charity exemptions have been deducted. Used only for the £3 million exempt-estate route.
- Specified transfers
- Gifts made within seven years of death consisting of: cash; household or personal goods; listed shares or securities; outright gifts of land or buildings to individuals. Gifts into trust, business interests and unlisted shares are not included.
- Specified exempt transfers
- Relevant lifetime transfers to a spouse, civil partner, charity or other exempt recipient that HMRC requires to be included when testing whether an estate is excepted.
- Gifts out of income above £3,000 in a tax year
- Where gifts claimed as normal expenditure out of income exceed £3,000 in any tax year, the full amount must be included in the specified-transfer total and in the gross-estate value used for the excepted-estate threshold test, even if the gifts would otherwise qualify for the normal-expenditure-out-of-income exemption.
- Gift with reservation of benefit
- A gift where the deceased continued to use, enjoy or benefit from the asset after giving it away — for example giving away a house but continuing to live in it without paying a full market rent.
- Long-term UK resident
- A statutory test that broadly applies where the individual was UK resident for at least 10 of the previous 20 tax years. Domicile, nationality and long-term UK residence are not the same thing.
About the estate
A few basic facts so we can decide which excepted-estate route applies.
Date of death
The rules in this checker apply to deaths on or after 6 April 2025. Different rules apply to earlier deaths.
Was the deceased domiciled in Scotland?
Scotland has an extra condition about legal-rights (legitim) claims.
Was the deceased a long-term UK resident immediately before death?
Generally a person is a long-term UK resident if they were UK resident for at least 10 of the previous 20 tax years. Domicile, nationality and long-term UK residence are not the same thing.
“No” switches to the separate non-long-term UK resident route. “Not sure” cannot pass any route.
Possible non-long-term UK resident excepted estate
A separate reporting route may apply where the deceased was not a long-term UK resident and only had a limited amount of qualifying UK property.
Had the deceased ever been a long-term UK resident at any time from 6 April 2025 up to the date of death?
Before 6 April 2025, had the deceased ever been UK domiciled or treated as UK domiciled for Inheritance Tax?
Domicile is a legal concept and is not the same as nationality, citizenship or ordinary residence.
Gross value of the deceased’s UK estate
Must be £150,000 or less for the simplified route.
Did the UK estate consist only of cash and listed shares or securities?
Did those UK assets pass only under a will, intestacy or survivorship?
Gross estate value for the excepted-estate test
Enter each component separately. Do not deduct debts, exemptions or reliefs at this stage.
Total value of assets owned solely by the deceased
Enter the open-market value at the date of death before deducting debts, exemptions or reliefs.
Value of the deceased’s share of jointly owned assets
Enter the value of the deceased’s beneficial share, not the total value of the jointly owned assets.
Value of relevant trust assets included in the estate
Include trust property in which the deceased had a qualifying interest and which forms part of the estate for Inheritance Tax.
Value of specified lifetime transfers included in the excepted-estate test
Include relevant gifts and transfers that HMRC requires to be added when testing whether an estate is excepted.
Value of specified exempt transfers
Include relevant lifetime transfers to a spouse, civil partner, charity or other exempt recipient where HMRC requires them to be included in the excepted-estate gross-value test.
Are gifts to a spouse, civil partner or charity being used to reduce the estate below the Inheritance Tax limit?
If Yes, we also test the additional £3 million exempt-estate conditions.
Residence and domicile — spouse or civil-partner exemption
These questions apply because spouse or civil-partner exemption is being used to reduce the estate.
At every relevant time from 6 April 2025 to the date of death, were both the deceased and their spouse or civil partner long-term UK residents under HMRC’s rules?
If either person had recently arrived in or left the UK, or has a complicated residence history, select “Not sure” until their position has been checked.
Before 6 April 2025, had both the deceased and their spouse or civil partner always been domiciled in the United Kingdom?
Domicile is not the same as nationality or tax residence. Select “Not sure” where either person was born overseas, lived overseas for a significant period or may have acquired a different domicile.
Section 1 — Lifetime gifts and transfers
Did the deceased make any gifts or other transfers during the seven years before death?
Section 2 — Gifts with reservation of benefit
Did the deceased give anything away but continue to use it, enjoy it or receive a benefit from it?
Examples: giving away a home but continuing to live there; giving away an investment but keeping its income; giving away an asset subject to conditions that benefited the deceased.
Section 3 — Gifts made out of income
Special rule for gifts made out of income. For the excepted-estate test, where gifts claimed as normal expenditure out of income exceeded £3,000 in a tax year, include the full amount of those gifts in the specified-transfer total and in the gross-estate value used for the threshold test. This special reporting rule applies even where the gifts may otherwise qualify for the normal-expenditure-out-of-income exemption. These gifts must be included in full when applying the excepted-estate limits.
Did gifts claimed as normal expenditure out of income exceed £3,000 in any tax year?
Section 4 — Assets held in trust
Did the estate include any assets held in trust in which the deceased had a right or interest?
Section 5 — Foreign assets
Did the deceased own any assets outside the UK, either solely or jointly?
Section 6 — Alternatively secured pensions
Does any alternatively secured pension give rise to an Inheritance Tax charge on the death?
Ordinary pensions are usually fine. Ask the pension provider whether a charge arises under the alternatively secured pension rules.
Section 7 — Transferred nil-rate band
Are you relying on unused nil-rate band transferred from a spouse or civil partner who died earlier?
If “Not sure”, no transferred nil-rate band will be applied through this checker.
Section 8 — Additional conditions for the £3 million exempt-estate route
These questions apply because you are relying on spouse, civil-partner or charity exemption.
Is the estate relying only on spouse or civil-partner exemption and/or charity exemption to remove the Inheritance Tax liability?
Do not answer “Yes” if the estate only falls below the threshold because of another exemption or relief such as Business Relief, Agricultural Relief, national heritage exemption or a political-party exemption.
Is charity exemption being deducted?
Qualifying liabilities (debts of the estate)
Total spouse or civil-partner exemption being deducted
Total charity exemption being deducted
Section 9 — Scotland: legal-rights / legitim
When calculating spouse, civil-partner or charity exemption, have any legal-rights or legitim claims against the estate been treated as being claimed in full?
For this test, only the minimum spouse, civil-partner or charity exemption remaining after accounting for legitim can be deducted.
Review your answers
Check the summary below, then reveal the result. Anything left blank or “Not sure” cannot count as a pass. Use Back to change any answer.
Result
This tool provides an initial indication only. Confirm every condition in pages 2–3 of the current IHT400 Notes, including specified transfers, gifts out of income, pensions, trusts, foreign assets and any transferred nil-rate-band claim.
Your road map — what happens, in what order
- Register the death and gather the paperwork. Will and any codicils, death certificate, bank and building society letters, pension and insurance details, property valuations, recent bills, and anything about gifts they made. The list below has the lot.
- Work out roughly what the estate is worth. Everything they owned at open market value, minus debts. This tells you whether there’s tax to pay and whether you need IHT400 at all (see the checker above).
- If there’s tax to pay — get an Inheritance Tax reference number. Apply online at gov.uk/paying-inheritance-tax (or post Schedule IHT422) at least 3 weeks before you send the form. No tax to pay = no reference needed.
- Fill in IHT400 boxes 1–28, then answer boxes 29–48 to see which schedules you need. Fill in the schedules, then copy the figures back into pages 7–12 of the main form.
- Arrange the tax payment. Tax is normally due by the end of the sixth month after the month in which the person died. The bank can usually pay HMRC straight from the deceased’s account (the “Direct Payment Scheme”, Schedule IHT423) — you don’t need to find the money yourself.
- Sign the declaration — All personal representatives who will be named on the grant must review and agree the declaration. They should sign unless the current HMRC non-physical-signature procedure is used correctly. Post the lot to HMRC — Inheritance Tax, HM Revenue and Customs, BX9 1HT. Copies only, never originals (except keep the original will safe — the probate service asks for that separately).
- Wait for HMRC’s letter with your unique code (it can also come by email if you tick the box on page 17), then apply for probate at gov.uk/applying-for-probate — fee £300 for estates over £5,000. Probate usually arrives within about 12 weeks of applying.
The paperwork treasure hunt — where the numbers come from
- Banks & building societies: write to each one — they’ll send the balance plus interest earned but not yet paid at the date of death. Ask about the Direct Payment Scheme at the same time.
- The home: an estate agent will usually value it free; for anything near or over the tax threshold, a paid RICS “Red Book” valuation is worth every penny — HMRC respects it and it protects you from challenge.
- Shares & investments: the platform or registrar can give a date-of-death valuation; for ISAs ask for capital and any interest/dividends due.
- Pensions: ask each scheme what was being paid, what arrears were due, and whether any lump sum is payable — and who decides who gets it (that decides whether it goes on the form as part of the estate).
- NS&I / Premium Bonds: claim a valuation at nsandi.com.
- Debts: mortgage statement, credit cards, utility bills to the date of death, care home fees, and the funeral invoice (keep it — it’s deductible).
- Gifts: Review at least the seven years before death. If the deceased made gifts into trust or other chargeable lifetime transfers, earlier transactions may also affect the calculation, so obtain specialist advice.
- The will: note who gets what — the spouse and charity shares change the tax directly.
The legal ways to shrink the bill — your claim-everything checklist
Inheritance Tax has generous allowances, but almost none of them are automatic — you have to claim them on the right schedule. Here’s the friendly adviser’s checklist. Every one of these is standard, HMRC-approved practice — it’s about paying what’s due and not a penny more.
| Opportunity | What it’s worth & how to claim |
|---|---|
| Spouse/civil partner exemption | Transfers to a spouse or civil partner are normally exempt. However, where the deceased was a long-term UK resident and the recipient spouse or civil partner was not, the exemption is generally limited to the nil-rate band (£325,000), unless a valid election or another exception applies. |
| Double the £325,000 band (widowed spouses) | If their husband, wife or civil partner died first and didn’t use their allowance, claim it with Schedule IHT402 (box 29c → box 116). Up to an extra £325,000 tax-free — worth up to £130,000 in tax. Send IHT402 no later than 24 months after the end of the month in which the deceased died, unless HMRC confirms a different permitted deadline. |
| Home to children: up to £175,000 more | The “residence nil rate band”. Claim on Schedule IHT435, and the late spouse’s unused one too on IHT436 — up to £350,000 extra tax-free in total. Even if they downsized or sold the home (e.g. moved to a care home) after 8 July 2015, a claim can still work. Send IHT436 no later than 24 months after the end of the month in which the deceased died, unless HMRC confirms a different permitted deadline. |
| 36% charity rate | The 36% rate may apply when the charitable gift is at least 10% of the statutory baseline amount for the relevant component of the estate. The calculation can involve separate components and elections, so use Schedule IHT430 or HMRC’s calculator. |
| Gift exemptions | On Schedule IHT403, knock off: £3,000 a year annual exemption (+ one unused prior year), £250 small gifts per person, wedding gifts (£5,000 child / £2,500 grandchild / £1,000 anyone), and normal expenditure out of income — this has no fixed monetary cap, but the gifts must be normal expenditure, made out of income and leave the donor with enough income to maintain their usual standard of living (page 8 of IHT403). |
| Deduct qualifying debts only | Deduct qualifying liabilities that the deceased actually owed at death, plus allowable funeral expenses. Do not deduct probate fees or post-death solicitor, estate-agent or valuation costs unless a specific HMRC rule permits them. |
| Use the open-market value of household and personal goods | Value household and personal goods at the price they might reasonably have sold for on the open market at the date of death. This is not the original purchase price, insurance value, replacement cost or an artificially low quick-sale value. Ordinary used household items may have modest resale values, but valuable, unusual or collectible items may need a professional valuation.
ⓘ What does open-market value mean?Open-market value is the price the item might reasonably have fetched if sold on the open market at the date of death. It assumes a normal sale between a willing seller and a willing buyer. It does not mean the lowest price available in a rushed clearance, house clearance or car-boot sale. The value should reflect the item’s actual condition, age, quality, rarity and likely market.
Examples of items and when to seek a valuationItems that may have modest second-hand values: ordinary furniture; standard kitchen equipment; used televisions and domestic electronics; everyday clothing; common household items. Items that may require closer attention or a professional valuation: jewellery and watches; paintings and other artwork; antiques; classic or valuable vehicles; coins, stamps or specialist collections; designer items; firearms or other licensed valuables; rare books; valuable musical instruments; items insured individually; anything likely to be worth a significant amount. Valuation evidenceUse realistic evidence where available, such as recent auction results, prices achieved for comparable second-hand items, dealer or auctioneer estimates, specialist valuation reports, or evidence from recognised resale platforms. Do not rely only on asking prices, as these may be higher than the amount an item would actually sell for.
When to consider a professional valuationConsider obtaining a professional valuation where an individual item is valuable; the estate includes jewellery, art, antiques or collections; an item is unusual or difficult to compare; there is disagreement between beneficiaries; HMRC may reasonably question the value; or the total value of household and personal goods is significant.
Probate value and insurance value are not the same. Insurance values often represent replacement cost and may be substantially higher than open-market value. Do not automatically use an insurance valuation as the probate value.
⚠️ Do not deliberately use an artificially low value. Personal representatives are responsible for providing reasonable and supportable valuations.
|
| Business & farm relief | Trading businesses and farmland can be 100% relieved (up to the new £2.5 million allowance for deaths from 6 April 2026, 50% above it) — Schedules IHT413/IHT414, plus IHT437 to claim a late spouse’s unused allowance. |
| Pay the house tax in instalments | Tax on the home and land can be spread over 10 annual instalments (box 110). Interest normally applies to outstanding instalments, but for qualifying Agricultural Relief or Business Relief assets inherited from 6 April 2026 the instalment balance is interest-free. Late instalments still attract interest. |
| Taxed twice? Quick succession relief | If the person inherited from someone else within 5 years and tax was paid then, claim successive charges relief on the IHT400 Calculation — up to 100% of that tax back off the bill. |
| Sale-loss relief | IHT35 and IHT38 can reduce the IHT value after qualifying sales at a loss, but statutory conditions apply. IHT35 must include all qualifying investments sold in the period; use the form notes before estimating a repayment. |
| Rewrite the will (legally) | Within 2 years, all affected beneficiaries can sign a deed of variation to redirect inheritances — e.g. to the surviving spouse or charity — and it’s read back into the will for tax. A solicitor should draft this one. |
Each of these is explained again in the box where it belongs, so you’ll meet them at the right moment as you work through the form.
▼ The form itself starts here — laid out like the paper version. Click anything you’re unsure about. ▼
HM Revenue
& Customs
& Customs
Inheritance Tax account
IHT400
INTERACTIVE COMPANION — NOT THE OFFICIAL FORM
When to use this form
Fill in this form if the deceased died on or after 18 March 1986, and there’s Inheritance Tax
to pay, or there’s no Inheritance Tax to pay, but the estate does not qualify as an excepted estate.
Deadline
You must send this form to us within 12 months of the date of death. Interest will be payable
after 6 months.
The Inheritance Tax account
The account is made up of this form and separate schedules. You’ll have to fill in some of the
schedules. Gather the deceased’s papers, fill in boxes 1 to 28, then work through boxes 29 to 48 to identify
which schedules you’ll need. Fill in the necessary schedules before moving on to fill in this form.
Inheritance Tax reference number
If there’s any Inheritance Tax to pay, you’ll need an Inheritance Tax reference number before
you send this form to us. Apply online or with Schedule IHT422, at least 3 weeks before you plan to send
us this form. You do not need one if there’s no tax to pay.
Filling in this form
Use the IHT400 ‘Notes’ to help you • fill in the form in black or blue ink • make full
enquiries so the figures you give are correct • do not send original documents, only copies.
If you need help
Go to www.gov.uk/inheritance-tax or phone the helpline on 0300 123 1072
(+44 300 123 1072 from outside the UK).
About the deceased
1
Deceased’s name
Title – enter MR, MRS, MISS, MS or other title
Surname
First names
2
Date of death DD MM YYYY
3
Inheritance Tax reference number
Go to the note at the top of this form
4
Was the deceased male or female?
Male
Female
5
Deceased’s date of birth DD MM YYYY
6
Did the deceased die on or before 5 April 2025?
No Go to box 6b
Yes
6a
Where was the deceased domiciled at the date of death?
Read the IHT400, ‘Notes’ for more information about ‘Domicile’
England and Wales
Scotland
Northern Ireland
other country specify country below
If the deceased was domiciled outside of the UK, you must complete
schedule IHT401 and go to box 8.
IHT400Page 1HMRC 04/26
About the deceased continued
6b
Was the deceased a long-term UK resident immediately before their death?
Go to IHT400, ‘Notes’ for information about long-term UK residence
No You must complete schedule IHT401a and go to box 7
Yes
If the deceased was domiciled in Scotland at the date of death
7
Has the legitim fund been discharged in full following the death?
Go to IHT400, ‘Notes’
Yes Go to box 8
No Provide a full explanation in the ‘Additional information’ boxes, page 19
Deceased’s details
8
Was the deceased
married or in a civil partnership?
single?
widowed or a surviving civil partner?
divorced or a former civil partner?
9
If the deceased was married or in a civil partnership at the time of their death, on what date
did the marriage or registration of the civil partnership take place? DD MM YYYY
10
Who survived the deceased
Tick all that apply
a spouse or civil partner?
brothers or sisters?
parents?
children? number
grandchildren? number
11
Deceased’s last known permanent address
Postcode
12
Was the property in box 11 owned or part-owned by the deceased or did the deceased have a
right to live in the property?
Do not tick ‘Yes’ to this question if the deceased was only renting the property
Yes Go to box 13
No Give details below. For example, ‘deceased lived
with daughter’ or ‘address was a nursing home’
13
Deceased’s occupation, or former occupation if retired
for example, ‘retired doctor’
13a
Deceased’s nationality
14
Deceased’s National Insurance number
15
Deceased’s Income Tax number or Unique Taxpayer Reference (UTR) (if known)
IHT400Page 2HMRC 04/26
Contact details of the person dealing with the estate
For example, a solicitor or executor.
16
Did anyone act under a power of attorney granted by the deceased during their lifetime?
This may have been a general, enduring or lasting power of attorney.
No
Yes Enclose a copy of the power of attorney.
Do not send the original document with this account.
17
Name and address of the firm or person dealing with the estate
Name
Postcode
House or building number
Rest of address, including house name or flat number
18
Contact name
If different from box 17
19
Phone number
20
Contact’s reference
21
If we need to repay any overpaid Inheritance Tax we will make
payments directly to a customer’s bank account using Faster Payments. Enter the account details below.
Account name
22
Sort code
23
Account number
Deceased’s will
24
Did the deceased leave a will?
No Go to box 29
Yes Go to box 25. Please enclose a copy of the will
and any codicils when sending us your account. If an instrument of variation alters the amount of
Inheritance Tax payable, please also send a copy. Do not send the original documents.
25
Is the address of the deceased as shown in the will the same as the deceased’s last known
permanent address at box 11?
No Go to box 26
Yes Go to box 27
26
What happened to the property given as the deceased’s residence in the will?
If the deceased sold the property but used all the sale proceeds to buy another main residence
for themselves and this happened more than once, simply say that the ‘residence was replaced by the current
property’. In all other cases give details of exactly what happened to the property, and give the date of
the events
IHT400Page 3HMRC 04/26
Items referred to in the will but not included in the estate
Only fill in boxes 27 and 28 if the deceased left a will. If they did not, go to box 29.
27
Are you including on this form all assets specifically referred to in the will?
For example, land, buildings, personal possessions, works of art or shares
No Go to box 28
Yes Go to box 29
28
Items referred to in the will and not included on this form.
Any gifts should be shown on form IHT403
| Items given away as gifts, sold or disposed of before the deceased’s death | Who was the item given or sold to, or what happened to it? | Date of gift, sale or disposal | Value of the item at the date of gift, sale or disposal £ | If the item was sold, what did the deceased do with the sale proceeds? |
|---|---|---|---|---|
IHT400Page 4HMRC 04/26
What makes up your Inheritance Tax account – schedules
To make a complete account of the estate you may need to fill in some separate schedules.
Answer the following questions by ticking the ‘No’ or ‘Yes’ box. (Click any question for help — and see the
plain-English schedule guide further down.)
29a
Residence nil rate band
Do you want to use the residence nil rate band?
No
Yes
Use Schedule IHT435
29b
Transfer of unused residence nil rate band
Do you want to transfer any unused residence nil rate band from the deceased’s spouse or
civil partner who died before them?
No
Yes
Use Schedule IHT436
29c
Transfer of unused nil rate band
Do you want to transfer any unused nil rate band from the deceased’s spouse or civil partner
who died before them?
No
Yes
Use Schedule IHT402
29d
Transfer unused 100% relief allowance for agricultural property or business property
Do you want to transfer any unused 100% relief allowance for agricultural property or business
property from the deceased’s spouse or civil partner who died before them?
No
Yes
Use Schedule IHT437
30
Gifts and other transfers of value
Did the deceased make any lifetime gifts or other transfers of value on or after
18 March 1986? See IHT400, ‘Notes’
No
Yes
Use Schedule IHT403
31
Jointly owned assets
Did the deceased jointly own any assets (other than business or partnership assets) with any
other persons?
No
Yes
Use Schedule IHT404
32
Houses, land, buildings and interests in land
Did the deceased own any houses, land or buildings or have rights over land in the UK in
their sole name?
No
Yes
Use Schedule IHT405
33
Bank and building society accounts
Did the deceased hold any bank or building society accounts in their sole name, including
cash ISAs, National Savings and Premium Bonds?
No
Yes
Use Schedule IHT406
34
Household and personal goods
Did the deceased own any household goods or personal possessions? If they did not, or they
do not have any value, please explain the circumstances in the ‘Additional information’ boxes on page 19.
No
Yes
Use Schedule IHT407
35
Household and personal goods donated to charity
Do the people who inherit the deceased’s household goods and personal possessions want to
donate some or all of them to a qualifying charity and deduct charity exemption from the value of
the estate?
No
Yes
Use Schedule IHT408
36
Pensions
Did the deceased have any provision for retirement other than the State Pension? For example,
a pension from an employer, a personal pension policy (or an alternatively secured pension)
No
Yes
Use Schedule IHT409
37
Life assurance and annuities
Did the deceased pay premiums on any life assurance policies, annuities or other products
which are payable either to their estate, to another person or which continue after death?
No
Yes
Use Schedule IHT410
38
Listed stocks and shares
Did the deceased own any listed stocks and shares or stocks and shares ISAs
(excluding control holdings)?
No
Yes
Use Schedule IHT411
39
Unlisted stocks and shares and control holdings
Did the deceased own any unlisted stocks and shares, or any control holdings of any
listed shares?
No
Yes
Use Schedule IHT412
40
Business Relief, business and partnership interests and assets
Do you want to deduct Business Relief from any business interests and assets owned by the
deceased or a partnership in which they were a partner?
No
Yes
Use Schedule IHT413
IHT400Page 5HMRC 04/26
What makes up your Inheritance Tax account – schedules continued
41
Farms, farmhouses and farmland
Do you want to deduct Agricultural Relief from any farmhouses, farms or farmland owned by
the deceased?
No
Yes
Use Schedule IHT414
42
Interest in another estate
Was the deceased entitled to receive any legacy or assets from the estate of someone who died
before them and that they had not received before they died?
No
Yes
Use Schedule IHT415
43
Debts due to the estate
Was the deceased owed any money by way of personal loans or mortgage at the date of death?
No
Yes
Use Schedule IHT416
44
Foreign assets
Did the deceased own any assets outside the UK either in their sole name or jointly
with others?
No
Yes
Use Schedule IHT417
45
Assets held in trust
Did the deceased have any right to benefit from any assets held in trust (including the right
to receive assets held in a trust at some future date)?
No
Yes
Use Schedule IHT418
46
Debts owed by the deceased
Do you wish to include a deduction from the estate for debts and liabilities of the following
types: money that was spent on behalf of the deceased and which was not repaid • loans • liabilities related
to a life assurance policy where the sum assured will not be fully reflected in the estate • debts that the
deceased guaranteed on behalf of another person?
No
Yes
Use Schedule IHT419
47
National Heritage assets
Is any asset already exempt or is exemption now being claimed, on the grounds of national,
scientific, historic, artistic, scenic or architectural interest? Or does any such asset benefit from an
Approved Maintenance Fund?
No
Yes
Use Schedule IHT420
48
Do you have all of the schedules you need?
No Download the schedules from
www.gov.uk/inheritance-tax or phone us on 0300 123 1072. When you have all the schedules you need, fill in
all of the marked schedules except IHT435 and IHT436 before you go to box 48a.
Yes Fill in all of the marked schedules except
IHT435 and IHT436 before you go to box 48a. Fill in schedules IHT435 and IHT436 after completing
box 108.
48a
Will you be deducting successive charges relief?
See questions 11 to 18 on the IHT400, ‘Calculation’.
No
Yes
48b
Will you be applying for double taxation relief or unilateral relief?
No
Yes
48c
Does the deceased’s domicile affect the way a double taxation convention applies?
No
Yes
Use Schedule IHT401
IHT400Page 6HMRC 04/26
Estate in the UK
Use this section to tell us about assets owned by the deceased in the UK. You should include
all assets owned outright by the deceased and the deceased’s share of jointly owned assets. You’ll need to copy
figures from the schedules you’ve filled in. Any assets the deceased had outside the UK should be shown on
Schedule IHT417, ‘Foreign assets’ and not in boxes 49 to 96.
Column A = tax due up front · Column B = tax can be paid in instalments — click any line to see why.
Jointly owned assets
Enter ‘0’ in the box if the deceased did not own any of the assets described.
Column A
Column B
49
Jointly owned assets (Schedule IHT404, box 5)
£
50
Jointly owned assets (Schedule IHT404, box 10)
£
Assets owned outright by the deceased
Enter the value of the assets owned outright by the deceased in the amount boxes attached to
each question. Enter ‘0’ in the box if the deceased did not own any of the assets described.
51
Deceased’s residence (except farmhouses and jointly owned houses)
(Schedule IHT405, box 7).
Include the value of jointly owned houses at box 49 and farmhouses at box 68 instead.
Have you considered residence nil rate band? (Schedules IHT435 and IHT436)
£
52
Bank and building society accounts in the deceased’s sole name
(Schedule IHT406, box 1)
£
53
Cash (in coins or notes) and uncashed traveller’s cheques
£
54
Premium Bonds and National Savings and Investments products
(Schedule IHT406, box 5)
£
55
Household and personal goods (Schedule IHT407, box 6)
£
56
Pensions (Schedule IHT409, boxes 7 and 15) – include the
value of any pensions arrears due at the date of death
£
57
Life assurance and mortgage protection policies
(Schedule IHT410, box 6)
£
58
Total of all the figures in column A (boxes 50 to 57)
£
59
Total of all the figures in column B (boxes 49 plus 51)
£
IHT400Page 7HMRC 04/26
Estate in the UK continued
Column A
Column B
60
Copy the figure from box 58
£
61
Copy the figure from box 59
£
62
UK Government and municipal securities (Schedule IHT411,
box 1), but include dividends and interest at box 64
£
63
Listed stocks, shares and investments that did not give the deceased control of the company
(Schedule IHT411, box 2)
£
64
Dividends or interest on stocks, shares and securities
£
65
Traded unlisted and unlisted shares except control holdings
(Schedule IHT412, boxes 1 and 2)
£
66
Traded unlisted and unlisted shares except control holdings
(go to IHT412 notes, ‘Paying tax by instalments’)
£
67
Control holdings of unlisted, traded unlisted and listed shares
(Schedule IHT412, boxes 3, 4 and 5)
£
68
Farms, farmhouses and farmland
(give details on Schedules IHT414 and IHT405)
£
69
Businesses including farm businesses, business assets and timber
(give details on Schedule IHT413 and IHT405)
£
70
Other land, buildings and rights over land
(give details on Schedule IHT405)
£
71
Interest in another estate (Schedule IHT415, box 7)
£
72
Interest in another estate (Schedule IHT415, box 9)
£
73
Debts due to the estate (Schedule IHT416, box 3 total)
£
74
Income Tax or Capital Gains Tax repayment
£
75
Trust income due to the deceased – go to IHT400, ‘Notes’
£
76
Other assets including cryptoassets and income due to the deceased
(enter details in the ‘Additional information’ boxes on page 19 of this form if not
given elsewhere)
£
77
Total of all the figures in column A (boxes 60 to 65 and
72 to 76)
£
78
Total of all the figures in column B (boxes 61 to 71)
£
79
Gross total of the estate in the UK (box 77 plus box 78)
£
IHT400Page 8HMRC 04/26
Deductions from the estate in the UK incurred up to the date of death
80
Mortgages, secured loans and other debts payable out of property or assets owned outright by
the deceased and shown in column B on pages 7 and 8.
For example, a mortgage secured on the deceased’s house or a loan secured on a business.
Enter the name of the creditor and say which property or asset the deduction relates to, describing the
liability. Provide copies of any written evidence of the debts.
| Name of creditor | Property or asset and description of liability | Amount £ |
|---|---|---|
Total
mortgages and secured loans
£
81
Funeral expenses
Funeral costs
£
Headstone
£
Other costs (specify)
Total cost
of funeral
£
82
Other liabilities
Enter any other liabilities that have not been shown in boxes 80 or 81. For example, outstanding
gas and electricity bills, credit card balances, nursing home fees or Income Tax.
| Creditor’s name and description of the liability | Amount £ |
|---|---|
Total other
liabilities
£
IHT400Page 9HMRC 04/26
Deductions from the estate in the UK continued
Deductions summary
Column A
Column B
83
Box 80 figure
£
84
Total of box 81 and box 82
£
85
Box 77 minus box 84.
If the result is a minus figure enter ‘0’ in the box and enter the deficit in box 88
£ 0
86
Box 78 minus box 83.
If the result is a minus figure enter ‘0’ in the box and enter the deficit in box 87
£ 0
87
Enter the deficit figure from box 86 (if there is one)
£ 0
88
Enter the deficit figure from box 85 (if there is one)
£ 0
89
Box 85 minus box 87
£ 0
90
Box 86 minus box 88
£ 0
91
Total estate in the UK (box 89 plus box 90)
£ 0
IHT400Page 10HMRC 04/26
Exemptions and reliefs
92
Exemptions and reliefs deducted from the assets in the deceased’s sole name shown on
pages 7 and 8, column A.
If you’re deducting spouse or civil partner exemption, enter the spouse’s or civil partner’s
full name, National Insurance number (if known), date and country of birth and whether the spouse is a
long-term UK resident. If you’re deducting charity exemption, enter the full name of the charity, country of
establishment and the HMRC charities reference, if available. Do not include exemptions or reliefs on jointly
owned assets — these go on Schedule IHT404, box 9. Do not deduct transferable nil rate band here — it
goes at box 116 or box 2 of IHT400, ‘Calculation’. If you’re claiming Agricultural Relief or Business Relief,
show the breakdown of the relief claimed at 100% or 50%.
| Describe the exemptions or reliefs you are claiming | Rate of relief enter 100% or 50% |
Amount deducted £ |
|---|---|---|
Total
exemptions and reliefs from assets in column A
£
IHT400Page 11HMRC 04/26
Exemptions and reliefs continued
93
Exemptions and reliefs deducted from the assets in the deceased’s sole name shown on
pages 7 and 8, column B.
Same details as box 92 — spouse/civil partner or charity details, and the 100%/50% breakdown
for Agricultural or Business Relief. Exemptions on jointly owned assets go on form IHT404, box 4.
| Describe the exemptions or reliefs you are claiming | Rate of relief enter 100% or 50% |
Amount deducted £ |
|---|---|---|
Total
exemptions and reliefs from assets in column B
£
Column A
Column B
94
Box 89 minus box 92
£ 0
95
Box 90 minus box 93
£ 0
96
Total net estate in the UK, after exemptions and reliefs
(box 94 plus box 95)
£ 0
IHT400Page 12HMRC 04/26
Other assets taken into account to calculate the tax
Column A
Column B
97
Foreign houses, land, businesses and control holdings
(Schedule IHT417, box 5)
£
98
Other foreign assets (Schedule IHT417, box 10)
£
99
Assets held in trust on which the trustees would like to pay the tax now
(Schedule IHT418, box H10)
£
100
Assets held in trust on which the trustees would like to pay the tax now
(Schedule IHT418, box H7)
£
101
Nominated assets.
Include details of the nominated assets in the ‘Additional information’ boxes on page 19
– go to IHT400, ‘Notes’
£
102
Box 98 plus box 100 plus box 101
£
103
Box 97 plus box 99
£
104
Gifts with reservation and pre-owned assets
(Schedule IHT403, box 17)
£
105
Assets held in trust on which the trustees are not paying the tax now
(Schedule IHT418, box H11 less value in boxes 99 and 100 above)
£
Box 106 is not in use
107
Total other assets taken into account to calculate the tax
(box 102 plus boxes 103, 104 and 105)
£
108
Total chargeable estate (box 96 plus box 107).
Complete IHT435 and IHT436 if you’ve ticked boxes 29a or 29b on page 5
£ 0
Working out the Inheritance Tax
If you’re filling in this form yourself without the help of a solicitor or other adviser, you
do not have to work the tax yourself, we can do it for you. If you want us to do this, tick here
If there is no Inheritance Tax to pay, you do not need to fill in this page and should go to
box 121 on page 15.
109
Does any part of the estate qualify for the reduced rate of Inheritance Tax (36%)?
Go to IHT400, ‘Notes’
No Go to box 110
Yes You’ll need to fill in Schedule IHT430,
‘Reduced rate of Inheritance Tax’
Paying Inheritance Tax by instalments
Instead of paying all of the Inheritance Tax at once you may pay some of it in 10 annual
instalments (that is, one instalment each year for 10 years). You can pay by instalments on any assets
shown in column B on pages 7 and 8 that have not been sold. Interest will be payable on the instalments.
The total value of the assets on which you may pay the tax by instalments is box 95 plus boxes 97 and 99
(if any).
110
Do you wish to pay the tax on the amounts shown in boxes 95, 97 plus 99 by instalments?
No Go to Simple Inheritance Tax calculation.
If you do not elect to pay tax by instalments you must pay all the tax due on the estate when you send
us your form IHT400.
Yes If any of the assets in column B have been
sold, write the total value of those assets here
£
Go to box 120IHT400Page 13HMRC 04/26
Simple Inheritance Tax calculation
You can use the simple calculation in boxes 111 to 119 to work out the Inheritance Tax on the
estate as long as the following apply:
• you’re paying the tax on or before the last day of the sixth month after the death occurred so
no interest is payable • you do not want to pay all of the tax now and not pay by instalments on property in
column B • the total of any lifetime gifts is below the Inheritance Tax nil rate band • you’re not deducting
double taxation relief on any foreign assets • you’re not deducting successive charges relief • the estate does
not qualify for the reduced rate of Inheritance Tax (36%).
If the simple calculation does not apply to you, you’ll need to use either form IHT400,
‘Calculation’ or Schedule IHT430 to work out the Inheritance Tax due, then continue to fill in this form at
box 120.
111
Residence nil rate band
(enter the result from the Residence nil rate band calculator, go to www.gov.uk)
£
112
Chargeable estate after residence nil rate band
(if negative enter ‘0’) (box 108 minus box 111)
£
113
Total chargeable value of gifts made by the deceased within the 7 years before their death
(IHT403, box 7)
£
114
Value chargeable to tax before nil rate band (box 112 plus
box 113)
£
115
Inheritance tax nil rate band at the date of death
go to IHT400, ‘Rates and tables’
£
116
Transferable nil rate band (Schedule IHT402, box 21)
£
117
Total nil rate band (box 115 plus box 116)
£
118
Value chargeable to tax (box 114 minus box 117)
£
119
Inheritance Tax (box 118 multiplied by 40%)
£ ·
Direct Payment Scheme
This is a scheme under which participating banks, building societies and National Savings and
Investments will release funds from the deceased’s accounts directly to HMRC to pay Inheritance Tax.
120
Do you wish to use the Direct Payment Scheme?
No
Yes Fill in Schedule IHT423 (you’ll need a
separate form for each bank, building society and National Savings and Investments account
concerned)
If you’re applying for probate in Northern Ireland you must complete and enclose the IHT421,
‘Probate Summary’. If you’re applying for Confirmation in Scotland, you must enclose a copy of the C1
‘Confirmation form’.
IHT400Page 14HMRC 04/26
Declaration
121
I/We wish to apply for the following type of grant
(go to the note ‘Grant of representation’ in IHT400, ‘Notes’ to decide on the type of grant)
Probate
Confirmation
Letters of Administration
Letters of Administration with will annexed
Other (specify)
122
Tell us where this application is being made. Tick one box
England and Wales
Scotland
Northern Ireland
To the best of my/our knowledge and belief, the information I/we have given and the statements
I/we have made in this account and the schedules attached (together called ‘this account’) are correct and
complete. Tick the schedules you’ve filled in.
IHT401
IHT409
IHT418
IHT401a
IHT410
IHT419
IHT402
IHT411
IHT420
IHT403
IHT412
IHT421
IHT404
IHT413
IHT430
IHT405
IHT414
IHT435
IHT406
IHT415
IHT436
IHT407
IHT416
IHT437
IHT408
IHT417
C1
I/We have made the fullest enquiries that are reasonably practicable in the circumstances to
find out the open market value of all the items shown in this account. The value of items in the boxes
listed are provisional estimates which are based on all of the information available to me/us at
this time. I/We will tell HM Revenue and Customs the exact values as soon as I/we know it and I/we will pay
any additional tax and interest that may be due.
List the boxes in the account that are provisional here.
I/We understand that I/we may be liable to prosecution if I/we deliberately conceal any
information that affects the liability to Inheritance Tax arising on the deceased’s death, or if I/we
deliberately include information in this account which I/we know to be false.
I/We understand that I/we may have to pay financial penalties if this account is
delivered late or contains false information, or if I/we fail to correct anything which is incorrect in any
material respect within a reasonable time of it coming to my/our notice.
I/We understand that the issue of the grant does not mean that I/we have paid all the
Inheritance Tax and interest that may be due on the estate, or that the statements made and the values
included in this account are accepted by HM Revenue and Customs.
IHT400Page 15HMRC 04/26
Declaration continued — signatures
Each person delivering this account, whether as executor, intending administrator or
otherwise, must sign this page to indicate that they have read and agreed to the statements on
pages 15 and 16.
Surname or agent name
First names
Date of birth
National Insurance number or UTR
Phone number
Address & postcode
Signature
Date DD MM YYYY
Surname or agent name
First names
Date of birth
National Insurance number or UTR
Phone number
Address & postcode
Signature
Date DD MM YYYY
(The paper form has space for up to 4 people — every executor named
on the probate application must sign.)
IHT400Page 16HMRC 04/26
Sending you an acknowledgement and code for probate or confirmation by email
When we’ve processed this IHT400 return, we’ll send you an acknowledgement letter. The letter
will include a code that you’ll need when you apply for probate in England and Wales, or confirmation
in Scotland. To speed up the process, we can send you this information by email. However, email is not
secure, so it’s important that you understand the risks.
I confirm I have read
and accept the terms outlined in the email disclaimer
Email address
Please state your capacity (for example, executor or agent)
We’ll only use email to send you this information. We cannot use this
email for any other correspondence.
IHT400Page 17HMRC 04/26
Checklist
Use the checklist to remind you of the actions you should take and the additional information
you should include when sending the Inheritance Tax forms to us. Click any item to see why it matters.
If the deceased died leaving
a will, provide a copy of the will, and any codicils
No
Yes
If the estate has been varied
and the variation changes the tax, provide a copy of the instrument of variation
No
Yes
Any professional
valuation of stocks and shares
No
Yes
Any professional
valuation of household effects or personal possessions
No
Yes
Any professional
valuation of houses, land and buildings
No
Yes
A copy of any insurance
policy (and annuity, if appropriate) where the deceased was paying premiums for the benefit of someone
else, and any trust documents if the policy was written in trust
No
Yes
A copy of any trust
deeds, if the trustees are paying tax at the same time as you apply for the grant
No
Yes
Any evidence of money owed
to the deceased, including loan agreements and any evidence of debts being released
No
Yes
A copy of any joint
life assurance policy or policy on the life of another person
No
Yes
A copy of any structural
survey and/or correspondence with the loss adjuster about structurally damaged property
No
Yes
If you’re deducting
Agricultural Relief, a plan of the property and a copy of the lease or agreement for letting
No
Yes
If you’re deducting
Business Relief, a copy of the partnership agreement (where appropriate) and the last
3 years’ accounts
No
Yes
If you’re deducting double
taxation relief, evidence of the foreign tax paid
No
Yes
Any written evidence of
debts to close friends or family
No
Yes
Have all executors signed
page 16 of this form?
No
Yes
If you’ve calculated your own
tax, have you enclosed the calculation and arranged to pay the tax?
No
Yes
Have you completed an IHT421 if
applying for a grant in Northern Ireland or a form C1 if applying in Scotland?
No
Yes
Agricultural or
Business Relief apportionment (if used) — have you enclosed the apportionment tool output?
No
Yes
Direct Payment Scheme
(if used) — have you sent a Schedule IHT423 to each organisation providing funds?
No
Yes
Return address and contact details
Send the Inheritance Tax forms to: Inheritance Tax, HM Revenue and Customs, BX9 1HT ·
Phone: 0300 123 1072. For more about any aspect of Inheritance Tax go to www.gov.uk/inheritance-tax.
IHT400Page 18HMRC 04/26
Additional information
Use this space: to explain the circumstances where the deceased did not own any household
effects (box 34) • details of any claim for discharge of legal rights (box 7) • other assets and income due
to the deceased (box 76) • nominated assets (box 101) • successive charges relief • why any debts that are
not being repaid out of the estate are still being deducted (box 80 or 82) • how you calculated the
apportionment of 100% and 50% Agricultural and/or Business Relief.
If you need more space, continue on a separate sheet.
IHT400Page 19HMRC 04/26
The schedules, in plain English
The IHT400 is really a cover form — the detail goes on separate schedules. Boxes 29–48 told you which ones you need. Here’s what each one actually is, so nothing feels mysterious. Click a card for what to gather, the fiddly bits, and any money-saving angles. Download any schedule from gov.uk.
IHT401Domicile outside the UK
Only if the person’s permanent home was abroad (deaths before 6 Apr 2025) or a treaty applies.
IHT401aNot a long-term UK resident
For deaths from 6 Apr 2025 where the person hadn’t lived in the UK 10 of the last 20 tax years.
IHT402Transfer unused nil rate band
The big one for widows and widowers — up to £325,000 extra tax-free.
IHT403Gifts & transfers of value
Lifetime gifts and transfers that must be reported, including relevant gifts in the seven years before death, gifts with reservation and certain earlier trust transfers.
IHT404Jointly owned assets
Joint homes, joint accounts — and the fact that a joint share may be worth less than its mathematical share, but any discount depends on the facts and related-property rules can prevent it.
IHT405Houses, land & buildings
Details and valuations of every property owned in their sole name.
IHT406Bank accounts & NS&I
Every sole-name account, with interest earned to the date of death.
IHT407Household & personal goods
Report household and personal goods using their open-market value at the date of death. List valuable items separately and obtain specialist valuations where appropriate. The value should reflect what the item might reasonably have sold for, not its original purchase price, replacement cost or a rushed clearance price.
IHT408Goods donated to charity
Use IHT408 when the beneficiaries who inherited household or personal goods donate them to a qualifying charity and want charity exemption. All relevant beneficiaries must sign and evidence of receipt is required.
IHT409Pensions
For deaths before 6 April 2027, many discretionary pension death benefits are outside the estate, but exceptions apply. For deaths on or after 6 April 2027, most unused pension funds and pension death benefits will be brought into the estate.
IHT410Life assurance & annuities
Policies paying the estate — policies written in trust usually stay out of it.
IHT411Listed stocks & shares
Shares, funds, ISAs — valued the special HMRC way at the date of death.
IHT412Unlisted shares & control holdings
From 6 April 2026, qualifying AIM/not-listed recognised-market shares generally receive 50% Business Relief.
IHT413Business Relief
Other qualifying business and agricultural property may receive 100% relief within the combined £2.5 million allowance, then 50% above it.
IHT414Agricultural Relief
Relief on farms and farmland that was farmed or let for farming.
IHT415Interest in another estate
An inheritance they were due but hadn’t yet received — and a possible relief if tax was already paid on it.
IHT416Debts due to the estate
Money others owed them — personal loans, IOUs, director’s loan accounts.
IHT417Foreign assets
Overseas property, accounts and shares — plus double taxation relief if another country taxed them too.
IHT418Assets held in trust
If they had the right to benefit from a trust — the trustees often pay that share of tax.
IHT419Debts owed by the deceased
Loans from family, money spent on their behalf, guarantees — with the evidence HMRC expects.
IHT420National Heritage assets
Conditional exemption for pre-eminent art, historic buildings and special land.
IHT421Probate summary (NI)
Only for Northern Ireland grants now — England & Wales use the emailed/posted code instead.
IHT422Apply for an IHT reference
The paper way to get your payment reference — online is faster.
IHT423Direct Payment Scheme
Ask the bank to pay HMRC straight from the deceased’s account — one form per bank.
IHT430Reduced rate (36%)
Claim the lower tax rate when 10%+ of the net estate goes to charity.
IHT435Residence nil rate band
Up to £175,000 may be available where a qualifying home, or qualifying downsizing value, is closely inherited by direct descendants. The amount is limited by the qualifying value and tapers for estates over £2 million.
IHT436Transfer unused RNRB
Add the late spouse’s unused home allowance — up to another £175,000.
IHT437IHT437 — Transfer unused 100% Agricultural and Business Relief allowance
Use IHT437 to claim the unused percentage of a deceased spouse or civil partner’s combined 100% Agricultural Relief and Business Relief allowance. The claim is not automatic — a valid claim must be submitted with IHT400. The survivor’s own £2.5m allowance can be increased by the unused percentage transferred from the spouse or civil partner who died first, up to a maximum combined 100% allowance of £5m, subject to the qualifying conditions.
Claim deadline — the later of four years from the end of the month in which the second spouse or civil partner died, or six months after the personal representatives started acting. Applies where the second death is on or after 6 April 2026.
C1Confirmation (Scotland)
Scotland’s equivalent of the probate application — the inventory of the estate.
Rates & tables — the numbers you’ll reach for
Current as at 11 July 2026. Check the live GOV.UK rate, fee or service-time page before relying on this figure.
Nil rate band (the tax-free allowance) — for box 115
For any death on or after 6 April 2009 the nil rate band is £325,000, and it stays frozen until April 2031. (Earlier deaths matter for the transferable band: e.g. 2007–08 £300,000, 2005–06 £275,000, 2002–03 £250,000 — but because the transfer works in percentages, the old amount rarely matters. The full historic table is on HMRC’s ‘IHT400 Rates and tables’ sheet you’ve downloaded.)
When the tax and the form are due
| Month of death | Tax due by | Interest runs from | IHT400 due by |
|---|---|---|---|
| January | 31 July | 1 August | IHT400 filing deadline: within 12 months of the date of death. This differs from the tax-payment date, which is normally the end of the sixth month after the month of death. |
| February | 31 August | 1 September | |
| March | 30 September | 1 October | |
| April | 31 October | 1 November | |
| May | 30 November | 1 December | |
| June | 31 December | 1 January |
…and so on: the tax is always due by the end of the sixth month after the month of death. Late-payment interest is currently 7.75% a year (from 9 January 2026 — it tracks the Bank of England base rate, so check the live rate on gov.uk). If you overpay, HMRC pays you interest back (currently 2.75%).
Taper relief on gifts — tax on the gift shrinks with time
| Years between gift and death | Reduction in the tax on that gift |
|---|---|
| 0–3 years | 0% (full 40% tax on the part above the nil rate band) |
| 3–4 years | 20% |
| 4–5 years | 40% |
| 5–6 years | 60% |
| 6–7 years | 80% |
| Over 7 years | Gift is completely outside the estate (usually) |
Remember: taper relief only helps when the gifts themselves exceed £325,000 — it reduces the tax, not the value of the gift.
Successive charges relief — inherited within 5 years
| Years between the two deaths | ≤1: 100% | 1–2: 80% | 2–3: 60% | 3–4: 40% | 4–5: 20% |
|---|
The headline allowances for a death in 2026 at a glance
| Allowance / rate | Amount | Where it’s claimed |
|---|---|---|
| Nil rate band | £325,000 | Box 115 (automatic) |
| Transferred nil rate band (widowed) | up to £325,000 more | IHT402 → box 116 |
| Residence nil rate band (qualifying home closely inherited by direct descendants, or downsizing value) | up to £175,000 | IHT435 → box 111 |
| Transferred residence nil rate band | up to £175,000 more | IHT436 → box 111 |
| Tax rate above allowances | 40% (36% with 10%+ to charity) | Box 119 / IHT430 |
| Spouse/civil partner exemption | Transfers to a spouse or civil partner are normally exempt. However, where the deceased was a long-term UK resident and the recipient spouse or civil partner was not, the exemption is generally limited to the nil-rate band (£325,000), unless a valid election or another exception applies. | Boxes 92–93 |
| Charity exemption | Unlimited | Boxes 92–93 |
| Agricultural/Business 100% relief allowance (deaths from 6 Apr 2026) | £2.5 million (then 50% relief above) | IHT413/414 → boxes 92–93, IHT437 to transfer |
After you post it — what happens next (England & Wales)
- Pay (or start paying) the tax. Direct Payment Scheme from the deceased’s bank (IHT423), your own transfer using the IHT reference, or NS&I funds. If money is stuck, ask HMRC about a “grant on credit”.
- HMRC processes the form and posts (or emails, if you ticked page 17) an acknowledgement letter with a unique code plus the estate values you’ll need for probate.
- Apply for probate at gov.uk/applying-for-probate using the code — £300 fee (free if the estate is £5,000 or less; extra sealed copies £16 each — order one per bank/insurer, it speeds everything up). Most grants arrive within about 12 weeks.
- HMRC may ask questions after the grant — that’s normal, especially about house values and debts. Keep every statement, valuation and receipt for at least this long.
- Update HMRC if values change — use C4 to correct estate values, liabilities, exemptions or reliefs where too much or too little tax was paid. Do not use C4 to claim a sale loss: use IHT38 for qualifying land/building losses and IHT35 for qualifying investment losses.
- Instalments diary: if you chose instalments, one-tenth is due each year on the anniversary of the due date — and the whole balance becomes due when the property is sold.
- Two-year window: deeds of variation, the charity top-up to reach 36%, and RNRB/TNRB claims generally close 2 years after the death. Conditional exemption should normally be claimed within two years of the death or other chargeable event. HMRC has discretion to accept a later claim, but do not rely on this; make a protective claim promptly where relevant. Put a reminder in the calendar now.
Feeling stuck at any point? The HMRC helpline (0300 123 1072) will talk you through any box. And if the estate has a business, farm, trust or foreign property in it, a STEP solicitor or chartered tax adviser is the friend to hire — their fee is usually small next to the reliefs they secure.