Inheritance Tax reporting and probate: deadlines and forms

When someone dies, their executors (or administrators, if there is no will) must value the estate, tell HMRC about it, pay any Inheritance Tax (IHT) and apply for probate before distributing the assets. The order of those steps matters, because IHT usually has to be paid before probate is granted.

Step 1: value the estate

Executors must value everything the person owned at the date of death, and deduct debts and funeral costs. That includes:

• property, at market value (a professional valuation is usually wise)
• bank and building society accounts, investments and ISAs
• personal possessions, cars and valuables
• the deceased’s share of jointly owned assets
• gifts made in the seven years before death
• assets in certain trusts where the deceased had an interest

Banks, pension providers and investment managers provide date-of-death values on request.

Step 2: decide whether the estate is excepted

Since 1 January 2022, estates that meet the excepted estate conditions do not need a full IHT return. The executors give the required information in the probate application instead. In broad terms, an estate can be excepted if:

There are further limits on gifts, trusts and foreign assets. If any condition is not met, a full account is needed.

Step 3: complete the IHT400 if needed

If the estate is not excepted, the executors complete form IHT400 with its supplementary schedules (for example IHT402 to transfer an unused nil-rate band, IHT435 for the residence nil-rate band, IHT403 for gifts).

• The IHT400 must be sent within 12 months of the end of the month of death.
• HMRC sends a code or calculation that the executors need for the probate application. In England and Wales, executors wait at least 20 working days after sending the IHT400 before applying.

Step 4: pay the Inheritance Tax

IHT is due by the end of the sixth month after the month of death. Someone who died in March 2026 has IHT due by 30 September 2026. Interest is charged on tax paid after that date.

Because probate is usually needed to access the deceased’s money, there are ways to pay first:

• Direct Payment Scheme: banks and building societies can transfer money from the deceased’s accounts straight to HMRC
• selling investments directly to HMRC in some cases, such as government stocks
• a loan from a bank or beneficiary, repaid once probate is granted

Paying by instalments

IHT on certain assets can be paid in 10 equal annual instalments:

• land and buildings (interest is charged on the outstanding balance)
• business and agricultural property qualifying for relief (interest-free from April 2026)
• shares giving control of a company and some unquoted shares

The first instalment is due at the end of the sixth month after death. If the asset is sold, the remaining tax becomes due.

Step 5: apply for probate

Executors apply for a grant of probate (England, Wales and Northern Ireland) or confirmation (Scotland), usually online. The grant gives them authority to collect and distribute the assets. Probate is not always needed for small estates or where assets were jointly owned.

After probate

• Collect the assets, pay debts and remaining tax, then distribute to beneficiaries.
• Report any Income Tax and Capital Gains Tax for the administration period; see CGT on inherited assets.
• If values change, for example property sells for less than the probate value within four years, tell HMRC and claim any relief.
• Consider a deed of variation within two years if beneficiaries want to redirect their inheritance.

Pensions from April 2027

From 6 April 2027, unused pension funds and most death benefits will form part of the estate for IHT. Executors will need to obtain values from pension schemes, and they can direct pension administrators to withhold 50% of taxable benefits for up to 15 months if they reasonably expect IHT to be due.

Frequently asked questions

When is Inheritance Tax due?

By the end of the sixth month after the month of death. Interest is charged after that.

Do I need to fill in an IHT400?

Only if the estate is not an excepted estate, for example because it is above the nil-rate band and not exempt because of spouse or charity gifts.

Do you have to pay Inheritance Tax before probate?

Usually yes, if tax is due. The Direct Payment Scheme lets banks pay HMRC from the deceased’s accounts before probate is granted.

Can Inheritance Tax be paid in instalments?

Yes, on land, buildings, some shares and business or agricultural property, over 10 years. Business and agricultural property instalments are interest-free.