Probate & Estates

Excepted Estates UK (2026): When You Don’t Need the Full IHT400 Form

Q: What is an excepted estate in the UK?

An excepted estate is an estate where the executor does not need to complete the full HMRC inheritance tax return (form IHT400) before applying for a Grant of Probate. The Non-Contentious Probate (Amendment) Rules 2021 (effective from 1 January 2022) significantly extended the scope of excepted estates by raising the reporting thresholds. Most UK estates are now excepted — HMRC estimates around 90% of estates do not pay IHT, and a significant majority now also qualify as excepted estates for reporting purposes. Executors of an excepted estate still apply for probate in the normal way but use a simpler declaration on the probate application rather than completing the IHT400.

Q: What are the three categories of excepted estate in 2026?

There are three categories: (1) Low-value excepted estate — the gross estate (before debts) is below £325,000 (the nil-rate band). No IHT is due and no IHT400 is needed; the executor simply declares this in the probate application. (2) Exempt estate — the gross estate is below £3,000,000 AND the entire estate (or the amount above the nil-rate band) passes to an exempt beneficiary: a surviving spouse or civil partner, or a charity. This category was extended in January 2022 from £1,000,000 to £3,000,000. (3) Non-domiciled excepted estate — the estate of a person not domiciled in the UK where the UK assets are £150,000 or less.

Q: What changed about excepted estates in January 2022?

The Non-Contentious Probate (Amendment) Rules 2021 (SI 2021/1235) came into force on 1 January 2022 and made three key changes: (1) the low-value threshold remained £325,000 but the rules about what counts toward the gross estate were clarified; (2) the exempt estate limit was raised dramatically from £1,000,000 to £3,000,000 — estates of up to £3,000,000 that pass entirely to a surviving spouse or charity no longer need the IHT400; (3) all excepted estates can now declare the estate value as part of the online probate application (IHT205 was abolished for deaths from 1 January 2022). This removed the need for paper form IHT205 (formerly required as a return for excepted estates).

Q: Does an excepted estate still need any HMRC forms?

For deaths on or after 1 January 2022, excepted estates no longer use form IHT205. Instead, the executor makes a declaration of the estate value as part of the online or paper probate application. If the estate is genuinely excepted — gross estate below £325,000, or the estate passes entirely to a surviving spouse and is below £3,000,000 — there is no separate HMRC submission. If a transferable nil-rate band is being claimed (from a predeceased spouse), the executor still completes form IHT217 (a short form) to claim the transfer, even for an excepted estate. HMRC has the right to ask for a full IHT400 for up to 35 months after the Grant is issued if it suspects the estate was incorrectly classified as excepted.

Q: What if the estate just exceeds the excepted estate threshold?

If the estate is close to but just above the excepted estate threshold — for example, a gross estate of £330,000 with no spouse and no charity legacies — the executor must complete the full IHT400 and all relevant supplementary schedules. This is a significant additional burden: the IHT400 is a complex 20-page form with up to 18 additional schedules. However, because the nil-rate band is £325,000, an estate of £330,000 would only owe IHT of 40% × £5,000 = £2,000 — but the compliance cost is high relative to the tax. Estates near the threshold benefit significantly from accurate valuations and allowable deductions (mortgage, debts, funeral costs).

Q: How do you apply for probate if the estate is an excepted estate?

Apply online at probate.service.gov.uk (form PA1P for estates with a will, PA1A for intestate estates). In the online application, you declare the estate type and gross estate value. For excepted estates, you confirm that the estate qualifies under one of the three categories. You do not submit a separate IHT form. You still need: the original will (if there is one), the death certificate, and an accurate estate valuation covering all assets and liabilities at date of death. The Probate Registry fee is £300 (plus £1.50 per official copy of the grant). Processing time for straightforward online applications: approximately 2 weeks without queries.

Q: Can HMRC review an excepted estate after probate is granted?

Yes. HMRC has the power to require full IHT reporting for up to 35 months after the date of the Grant of Probate if it suspects an estate was incorrectly classified as excepted. In practice, HMRC monitors a sample of excepted estates and can issue a notice requiring the executor to complete and submit a full IHT400. If the estate turns out to owe IHT — because assets were undervalued or omitted — HMRC charges the tax due plus interest (currently 7.5% above base rate for unpaid IHT). Executors face personal liability for any IHT due on an estate they have distributed before all tax is settled. Keep all estate records for at least 4 years after the Grant.

Updated 13 May 2026·7 min read·England & Wales

Quick answer

An excepted estate does not need the full HMRC IHT400 form before applying for probate. There are three categories: (1) gross estate below £325,000; (2) gross estate below £3,000,000 passing entirely to a surviving spouse or charity; (3) non-UK-domiciled estates with UK assets below £150,000. The IHT205 form was abolished from 1 January 2022 — executors now make a simple declaration in the probate application instead.

The three categories of excepted estate — 2026 thresholds

Category	Threshold	Key condition	IHT400 needed?
Low-value estate	Gross estate < £325,000	None — automatically excepted	No
Exempt estate	Gross estate < £3,000,000	All (or the excess above NRB) passes to spouse/civil partner or charity	No
Non-domiciled	UK assets < £150,000	Deceased was not UK-domiciled	No
All other estates	Any	Does not meet any of the above	Yes — full IHT400

Thresholds for deaths on or after 1 January 2022 (SI 2021/1235). Gross estate = total assets before deducting debts.

What changed from January 2022 — the end of IHT205

Before 1 January 2022, executors of excepted estates had to complete form IHT205 — a 4-page summary return for HMRC, submitted with the probate application. This was abolished by the Non-Contentious Probate (Amendment) Rules 2021 (SI 2021/1235).

For deaths on or after 1 January 2022, executors simply declare the estate value as part of the online probate application. There is no separate HMRC form for excepted estates. The exempt estate threshold was simultaneously raised from £1,000,000 to £3,000,000 — significantly expanding the number of spousal estates that qualify.

Estates before 1 January 2022

For deaths before 1 January 2022, the old rules apply: the exempt estate threshold was £1,000,000, and form IHT205 was required. If you are dealing with such an estate, use the HMRC guidance for the date of death, not the current rules.

When the IHT400 IS required — examples

The full IHT400 is required when:

Gross estate exceeds £325,000 AND does not pass entirely to a spouse or charity
Gross estate exceeds £3,000,000 even if it passes entirely to a spouse
The estate includes foreign property and the deceased was UK-domiciled
The estate includes assets that qualify for relief (Business Property Relief, Agricultural Property Relief) that must be claimed on supplementary schedules
The deceased made significant lifetime gifts in the 7 years before death that need reporting as potentially exempt transfers (PETs) or chargeable lifetime transfers (CLTs)
A deed of variation redirects assets and the IHT write-back is claimed

Claiming the transferable nil-rate band in an excepted estate

Even if an estate qualifies as excepted, the executor may still want to claim thetransferable nil-rate band from a predeceased spouse — giving the estate a combined threshold of up to £650,000 (and potentially £1,000,000 with the RNRB). For excepted estates, this is done using the shorter form IHT217 (not the full IHT400).

IHT217 is a 4-page form requiring basic details of the first spouse’s estate — the unused nil-rate band percentage and the first death date. It is attached to the probate application alongside the estate declaration. The executor does not need to complete the IHT400 to claim the transferred NRB for an excepted estate.

HMRC’s right to review — why accurate records matter

Classifying an estate as excepted does not close the file with HMRC. Under Schedule 6 of the Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (as amended), HMRC can require a full IHT400 within 35 months of the Grant being issued.

Executors must keep all estate records (valuations, bank statements, share certificates, property information) for at least 4 years after the Grant. If HMRC later requires a full return and the estate turns out not to qualify as excepted, the executor faces:

IHT due at 40% on the excess above available nil-rate bands
Interest on unpaid IHT (currently HMRC interest rate)
Potential penalties for inaccurate reporting
Personal liability if assets were distributed before the tax was settled

Frequently asked questions

What is an excepted estate in the UK?▼

An excepted estate is an estate where the executor does not need to complete the full HMRC inheritance tax return (form IHT400) before applying for a Grant of Probate. The Non-Contentious Probate (Amendment) Rules 2021 (effective from 1 January 2022) significantly extended the scope of excepted estates by raising the reporting thresholds. Most UK estates are now excepted — HMRC estimates around 90% of estates do not pay IHT, and a significant majority now also qualify as excepted estates for reporting purposes. Executors of an excepted estate still apply for probate in the normal way but use a simpler declaration on the probate application rather than completing the IHT400.

What are the three categories of excepted estate in 2026?▼

There are three categories: (1) Low-value excepted estate — the gross estate (before debts) is below £325,000 (the nil-rate band). No IHT is due and no IHT400 is needed; the executor simply declares this in the probate application. (2) Exempt estate — the gross estate is below £3,000,000 AND the entire estate (or the amount above the nil-rate band) passes to an exempt beneficiary: a surviving spouse or civil partner, or a charity. This category was extended in January 2022 from £1,000,000 to £3,000,000. (3) Non-domiciled excepted estate — the estate of a person not domiciled in the UK where the UK assets are £150,000 or less.

What changed about excepted estates in January 2022?▼

The Non-Contentious Probate (Amendment) Rules 2021 (SI 2021/1235) came into force on 1 January 2022 and made three key changes: (1) the low-value threshold remained £325,000 but the rules about what counts toward the gross estate were clarified; (2) the exempt estate limit was raised dramatically from £1,000,000 to £3,000,000 — estates of up to £3,000,000 that pass entirely to a surviving spouse or charity no longer need the IHT400; (3) all excepted estates can now declare the estate value as part of the online probate application (IHT205 was abolished for deaths from 1 January 2022). This removed the need for paper form IHT205 (formerly required as a return for excepted estates).

Does an excepted estate still need any HMRC forms?▼

For deaths on or after 1 January 2022, excepted estates no longer use form IHT205. Instead, the executor makes a declaration of the estate value as part of the online or paper probate application. If the estate is genuinely excepted — gross estate below £325,000, or the estate passes entirely to a surviving spouse and is below £3,000,000 — there is no separate HMRC submission. If a transferable nil-rate band is being claimed (from a predeceased spouse), the executor still completes form IHT217 (a short form) to claim the transfer, even for an excepted estate. HMRC has the right to ask for a full IHT400 for up to 35 months after the Grant is issued if it suspects the estate was incorrectly classified as excepted.

What if the estate just exceeds the excepted estate threshold?▼

If the estate is close to but just above the excepted estate threshold — for example, a gross estate of £330,000 with no spouse and no charity legacies — the executor must complete the full IHT400 and all relevant supplementary schedules. This is a significant additional burden: the IHT400 is a complex 20-page form with up to 18 additional schedules. However, because the nil-rate band is £325,000, an estate of £330,000 would only owe IHT of 40% × £5,000 = £2,000 — but the compliance cost is high relative to the tax. Estates near the threshold benefit significantly from accurate valuations and allowable deductions (mortgage, debts, funeral costs).

How do you apply for probate if the estate is an excepted estate?▼

Apply online at probate.service.gov.uk (form PA1P for estates with a will, PA1A for intestate estates). In the online application, you declare the estate type and gross estate value. For excepted estates, you confirm that the estate qualifies under one of the three categories. You do not submit a separate IHT form. You still need: the original will (if there is one), the death certificate, and an accurate estate valuation covering all assets and liabilities at date of death. The Probate Registry fee is £300 (plus £1.50 per official copy of the grant). Processing time for straightforward online applications: approximately 2 weeks without queries.

Can HMRC review an excepted estate after probate is granted?▼

Yes. HMRC has the power to require full IHT reporting for up to 35 months after the date of the Grant of Probate if it suspects an estate was incorrectly classified as excepted. In practice, HMRC monitors a sample of excepted estates and can issue a notice requiring the executor to complete and submit a full IHT400. If the estate turns out to owe IHT — because assets were undervalued or omitted — HMRC charges the tax due plus interest (currently 7.5% above base rate for unpaid IHT). Executors face personal liability for any IHT due on an estate they have distributed before all tax is settled. Keep all estate records for at least 4 years after the Grant.

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This article is for general information only and does not constitute legal or tax advice. Excepted estates rules are set by the Non-Contentious Probate (Amendment) Rules 2021 (SI 2021/1235), effective for deaths on or after 1 January 2022. Always verify the current thresholds with HMRC or a qualified solicitor before applying for probate.