HMRC Inheritance Tax Forms UK (2026): IHT400, Excepted Estates, and When Each Form Is Required

Not every estate requires a full IHT account (IHT400). Most small and straightforward estates are 'excepted estates' — and the process for these was significantly simplified from 1 January 2022: (1) WHAT IS AN EXCEPTED ESTATE: an excepted estate is one that falls below the threshold at which HMRC requires a full IHT account. There are three types: (a) LOW VALUE ESTATE: the gross estate (before deducting debts and liabilities) is below the IHT nil-rate band (£325,000). If the deceased was never married/in a civil partnership and had not made significant lifetime gifts, this is the simplest case; (b) EXEMPT ESTATE: the estate is over £325,000 but only because of assets passing to: (i) the surviving spouse or civil partner (using the unlimited spousal exemption); (ii) a qualifying charity; (iii) both — with no assets passing to anyone else. The gross value must be below £3,000,000; (c) TRANSFERABLE NIL-RATE BAND ESTATE: the estate qualifies for a transferred NRB from a deceased spouse/civil partner, giving a total threshold up to £650,000, and the gross estate is below this combined threshold plus any RNRB entitlement; (2) BEFORE JANUARY 2022 — IHT205: until 31 December 2021, executors of excepted estates completed paper form IHT205 and sent it to the Probate Registry. From 1 January 2022, the IHT205 was abolished and replaced by a digital process (see Q2); (3) THE EXCEPTED ESTATE CRITERIA IN DETAIL: the criteria for excepted estate status are set out in the Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (as amended). The estate also fails excepted estate status if the deceased: (a) made chargeable lifetime transfers (CLTs) exceeding £250,000 in the 7 years before death; (b) held foreign assets exceeding £100,000; (c) had an interest in a trust; (d) had benefited from certain trusts settled by others.

From 1 January 2022, HMRC abolished paper form IHT205 for excepted estates and replaced it with a new digital process integrated into the HMCTS probate application system: (1) THE NEW PROCESS (FROM 1 JANUARY 2022): for deaths on or after 1 January 2022, executors of excepted estates provide estate information as part of the ONLINE PROBATE APPLICATION at apply-for-probate.service.gov.uk. The key change is that: (a) the estate value information is entered directly into the probate application; (b) there is NO separate IHT form to send to HMRC; (c) the probate system automatically shares the estate information with HMRC; (2) WHAT INFORMATION IS PROVIDED: when completing the online probate application for an excepted estate, the executor enters: (a) the gross value of the estate; (b) the net value (after deducting debts); (c) confirmation that the estate qualifies as an excepted estate; (d) any lifetime gifts made by the deceased; (3) PAPER APPLICATIONS — IHT205 STILL APPLIES FOR PRE-2022 DEATHS: for deaths BEFORE 1 January 2022, the old IHT205 still applies. Executors applying for probate on pre-2022 deaths must still complete the IHT205 (even if applying now in 2026); (4) HMRC'S RIGHT TO INQUIRY: even for excepted estates, HMRC retains the right to open an inquiry into the estate for up to 35 months after the date the estate was reported. HMRC can request that the estate be treated as non-excepted and require a full IHT400 account. In practice, HMRC inquiries into excepted estates are rare for genuinely simple estates; (5) EXCEPTED ESTATE — NO IHT PAYABLE: because excepted estates are below the IHT threshold (or exempt), no IHT is payable. No IHT421 confirmation is needed, and no payment to HMRC is required before probate is granted.

The IHT400 (Inheritance Tax Account) is the full HMRC inheritance tax return required for estates that do not qualify as excepted estates: (1) WHEN THE IHT400 IS REQUIRED: a full IHT400 must be filed where: (a) the estate does NOT qualify as an excepted estate — for example, it exceeds the thresholds; (b) the deceased made chargeable lifetime transfers (CLTs) in excess of £250,000 in the 7 years before death; (c) the deceased had a foreign domicile and there are UK assets in the estate; (d) the deceased had a beneficial interest in a trust; (e) the estate includes foreign assets exceeding £100,000; (f) the estate is claiming reliefs such as Business Property Relief (BPR) or Agricultural Property Relief (APR) — these must be specifically claimed on the IHT400; (g) the estate is making a deed of variation that affects IHT; (h) the executor is claiming the RNRB where direct downsizing has occurred; (2) WHEN THE IHT400 MUST BE FILED: the IHT400 and any tax due must be submitted BEFORE the Probate Registry will issue a grant of probate. Specifically: (a) the IHT400 should ideally be submitted to HMRC within 12 months of the end of the month in which the death occurred; (b) HMRC issues an IHT421 (confirmation that the estate is ready for probate) only after they have processed the IHT400 and any IHT due has been paid or arrangements made; (c) only after the IHT421 is received can the executor apply to the Probate Registry for the grant; (3) PAYING IHT BEFORE PROBATE: where IHT is payable, at least some must be paid BEFORE probate — even though the executor may not yet have access to estate funds. Options include: (a) the Direct Payment Scheme — banks release funds directly to HMRC before probate; (b) Instalments — IHT on property and certain other assets can be paid in 10 annual instalments; (c) personal payment by the executor (recoverable from the estate); (4) INTEREST ON LATE PAYMENT: IHT is due 6 months after the end of the month of death. Interest accrues on unpaid IHT from that date at HMRC's statutory rate.

The IHT400 is a core form — but it is supplemented by a large number of schedules (IHT402 to IHT435+) that deal with specific asset types and reliefs. The executor only completes the schedules that are relevant to the estate: (1) COMMONLY REQUIRED SCHEDULES: (a) IHT402 — CLAIM TO TRANSFER UNUSED NIL-RATE BAND: used to claim the Transferable Nil-Rate Band (TNRB) from a deceased spouse or civil partner. Requires the first spouse's probate details; (b) IHT403 — GIFTS AND OTHER TRANSFERS OF VALUE: lists all gifts made by the deceased in the 7 years before death (and before for CLTs). Required for all estates with lifetime gifts; (c) IHT404 — JOINTLY OWNED ASSETS: lists assets held in joint names (jointly owned property, joint bank accounts). Identifies the co-owner and the deceased's share; (d) IHT405 — HOUSES, LAND, BUILDINGS AND INTERESTS IN LAND: residential property, commercial property, land. Provides valuation details; (e) IHT406 — BANK AND BUILDING SOCIETY ACCOUNTS: lists the deceased's bank accounts with balance at date of death; (f) IHT407 — HOUSEHOLD AND PERSONAL GOODS: contents of the home, personal effects, jewellery, vehicles; (g) IHT408 — STOCKS AND SHARES: investments held in a dealing/brokerage account or directly; (h) IHT409 — PENSIONS: details of pension scheme membership — primarily relevant to old-style final salary pensions with lump sum death benefits; (i) IHT410 — LIFE ASSURANCE AND ANNUITIES: life insurance not held in trust; (j) IHT411 — LISTED STOCKS AND SHARES: stocks quoted on a recognised stock exchange; (k) IHT412 — UNLISTED STOCKS, SHARES AND INVESTMENTS: unquoted shares, AIM investments; (l) IHT413 — BUSINESS AND PARTNERSHIP INTERESTS: sole trader business assets; partnership shares — primarily used when claiming BPR; (m) IHT416 — DEBTS DUE TO THE ESTATE: money owed to the deceased at death; (n) IHT419 — DEBTS OWED BY THE DECEASED: liabilities of the estate — mortgages, credit cards, loans; (o) IHT421 — PROBATE SUMMARY: this is the confirmation issued BY HMRC back to the executor after processing the IHT400; (2) BPR AND APR SCHEDULES: (a) IHT413 (business interests — s.103 IHTA 1984 BPR claim); (b) IHT414 (agricultural property — s.116 IHTA 1984 APR claim); (c) IHT415 (interest in another estate — where the deceased was entitled to an inheritance from another estate at the time of their own death).

The IHT421 is the confirmation form that links HMRC's IHT process to the Probate Registry's grant process — without it, probate cannot be granted for a taxable estate: (1) WHAT IS THE IHT421: the IHT421 (Probate Summary) is a document issued by HMRC to confirm that: (a) the IHT400 has been received and processed; (b) the IHT due has been paid (or arrangements to pay have been made, such as for instalment option assets); (c) the estate is cleared for probate to be granted. The Probate Registry will NOT issue a grant until it has received confirmation from HMRC (via the IHT421 reference) that the estate is in order; (2) THE SEQUENCE OF STEPS FOR A TAXABLE ESTATE: (a) STEP 1 — VALUE THE ESTATE: obtain valuations for all estate assets at date of death (professional valuations for property; probate values for shares using 'quarter up' rule); (b) STEP 2 — COMPLETE IHT400 AND RELEVANT SCHEDULES: the executor (usually through a solicitor) completes the IHT400 and all applicable supplementary schedules; (c) STEP 3 — CALCULATE IHT DUE: apply the nil-rate band, RNRB, exemptions (spousal; charitable), and reliefs (BPR; APR); calculate the net IHT liability; (d) STEP 4 — PAY IHT DUE: before HMRC will process the IHT400, the IHT due must be paid. Options: Direct Payment Scheme (bank pays HMRC directly before probate — most estates); instalment option (property and certain assets — 10 annual instalments, first instalment due 6 months after end of month of death); personal payment by executor; (e) STEP 5 — SUBMIT IHT400 TO HMRC: file the IHT400 with payment confirmation by post to HMRC Inheritance Tax (BX9 1HT); (f) STEP 6 — RECEIVE IHT421 FROM HMRC: HMRC processes the return (typically 4-12 weeks) and issues the IHT421 confirming the estate is cleared for probate; (g) STEP 7 — APPLY TO PROBATE REGISTRY: using the IHT421 reference, submit the online probate application. The grant is issued by the Probate Registry once all documents are received; (3) INTEREST AND PENALTIES: if IHT is not paid within 6 months of the end of the month of death, interest accrues daily at HMRC's statutory rate (currently 7.25% as of 2026 — check current rates). Penalties can also apply for late filing of the IHT400.