Inheritance Tax and Probate UK: IHT400, IHT421, Grant of Probate — Step by Step Guide (2026)
The IHT 'catch-22' — you need probate to access the estate, but must pay IHT before probate — is solved by the Direct Payment Scheme. Here is the full step-by-step process for non-excepted estates in England and Wales.
| Step | Action | Detail | Who | Timeline |
|---|---|---|---|---|
| 1 | Value the estate | Value all assets (property, investments, bank accounts, chattels, foreign assets, trust assets if applicable) and all liabilities (debts, mortgages, funeral expenses). Calculate gross estate and net estate. | Executors (with valuers where needed — RICS surveyor for property; stockbroker for shares) | 1-12 weeks depending on complexity |
| 2 | Determine if estate is excepted | Check if the estate qualifies as excepted (low value ≤£325k; exempt ≤£3m all-to-spouse/charity; NRB estate net ≤£650k with tNRB AND IHT = £0 AND gross < £3m). If excepted: skip to Step 8. | Executors (check SI 2021/1166 criteria) | Immediate once estate is valued |
| 3 | Complete IHT400 and relevant supplementary schedules | IHT400 (main form); IHT402 (transferred NRB — tNRB); IHT403 (gifts in 7yr before death); IHT404 (jointly owned assets); IHT405 (property); IHT406 (bank accounts); IHT407 (household goods); IHT408 (income); IHT411 (listed shares); IHT412 (unlisted shares/business interests); IHT413 (BPR); IHT414 (APR); IHT415 (IOU/debts owed to deceased); IHT417 (foreign assets); IHT418 (assets held in trust); IHT419 (debts owed by the deceased); IHT421 (application to receive IHT421 direct to Probate Registry); IHT430 (reduced rate for charitable giving); IHT435 (RNRB — NOT automatic); IHT436 (tRNRB — NOT automatic). Submit IHT400 by post to HMRC Trusts and Estates, BX9 1HT. | Executors; solicitor or accountant often engaged for complex estates | Must be submitted within 6 months of end of month of death (s226 IHTA 1984) |
| 4 | Pay the IHT | Pay IHT owed when submitting IHT400 (or within 6 months of end of month of death). IHT is due in one sum UNLESS the instalment option applies. HOW TO PAY PRE-PROBATE: (a) Direct Payment Scheme (DPS): request the bank/NS&I to pay HMRC directly; only available for funds the deceased had in their accounts; request at least 6 weeks before IHT due; bank contacts HMRC and releases funds. (b) Personal borrowing: executors borrow funds personally; pay IHT; recover from estate post-probate. (c) Selling assets before probate: in limited cases, certain assets can be transferred without probate (e.g., premium bonds, NS&I savings bonds up to certain limits, small bank balances some banks release to executors by survivorship or indemnity). (d) Instalment option (s227 IHTA): eligible property (land, buildings, controlling shareholding, business interest) — IHT payable in 10 equal annual instalments; first instalment due at 6-month deadline; interest runs on unpaid instalments from April 2023 at HMRC rate (currently 7.5% p.a.). | Executors; DPS via the bank/NS&I | Within 6 months of end of month of death; DPS request 6 weeks in advance |
| 5 | Receive IHT421 from HMRC | HMRC processes the IHT400 and issues the IHT421 (Probate Summary). The IHT421 confirms the IHT position and tells the Probate Registry that the inheritance tax has been accounted for. HMRC sends the IHT421 directly to the Probate Registry (since 2021 they send it electronically — executors do not need to forward it). Processing time: typically 8-12 weeks from HMRC receipt of IHT400 (longer in busy periods; HMRC publishes current processing times on gov.uk). | HMRC Trusts and Estates processes; IHT421 goes directly to Probate Registry | 8-12 weeks from IHT400 submission typically; can be longer |
| 6 | Apply for grant of probate (PA1P or PA1A) | Submit PA1P (where there is a will) or PA1A (no will — intestacy) to the Probate Registry. Since 2019, most applications are made online via the HMCTS online probate service. Documents required: the original will (if any); a certified copy of the death certificate; the probate application form (PA1P or PA1A); statement of truth (declaration that the estate information is correct). For non-excepted estates: the IHT421 must be received by the Probate Registry from HMRC BEFORE the grant can be issued — hence the process cannot go any faster than HMRC's IHT400 processing time. Application fee: £273 for estates exceeding £5,000 in England and Wales; additional sealed copies 50p each (useful for banks/institutions requiring original-style sealed copies of the grant). | Executors (personal applicants — no solicitor required); or solicitor on executors' behalf | Can apply online as soon as IHT421 received by Probate Registry; grant typically issued 8-16 weeks from PA1P submission |
| 7 | Receive grant of probate | The Probate Registry issues the grant of representation (grant of probate for a will; letters of administration for intestacy). The grant is the legal document confirming the executor's authority to deal with the estate — collect assets, pay debts, and distribute to beneficiaries. Banks, HMRC, and other institutions will require a sealed copy of the grant before releasing assets. | Probate Registry (HMCTS) issues; executors receive and present to institutions | 8-16 weeks from PA1P submission (after IHT421 received) in England/Wales |
| 8 | Excepted estate — apply for probate directly (no IHT400) | If the estate is excepted (Steps 1-2 confirmed), executors complete the PA1P or PA1A probate application including the estate information (asset/liability values) as part of the form, confirm the excepted estate status, and submit directly to the Probate Registry. No IHT400 needed. No IHT421 needed. No pre-probate IHT payment needed (estate is IHT-zero). Application fee: £273 for estates > £5k. Grant issued without the HMRC IHT processing step — much faster. | Executors directly; no HMRC involvement for excepted estates | Typically 8-16 weeks from PA1P submission (no HMRC processing delay) |
IHT and probate process England and Wales 2026. IHT deadline: s226 IHTA 1984 — 6 months from end of month of death. IHT interest: s233/s234 IHTA 1984 — HMRC late payment rate (~7.5% p.a. June 2026) from day after deadline. Direct Payment Scheme (DPS): deceased's bank/NS&I pays HMRC pre-probate; 6+ weeks lead time; most major banks participate. Instalment option: s227/s228 IHTA 1984 — qualifying property (land, buildings, controlling shareholding, business); 10 annual instalments; interest-bearing from April 2023. IHT400 to: HMRC Trusts and Estates, BX9 1HT. IHT402: tNRB — NOT automatic; must submit to claim. IHT435: RNRB — NOT automatic. IHT436: tRNRB — NOT automatic. IHT421: HMRC issues; sent electronically to Probate Registry; executors do not forward. PA1P (will) / PA1A (intestacy): HMCTS online probate service; probate fee £273 (estate > £5k England and Wales). Grant of probate: legal authority for executor to deal with estate; grant required by banks/institutions. Excepted estates: no IHT400; no IHT421; apply PA1P/PA1A directly; no pre-probate payment. Scotland: confirmation; Sheriff Court; C1 form; separate regulations.
IHT and Probate: Complete Guide
What is probate and why does IHT have to be paid first?
Probate is the legal process by which a deceased person's will is 'proved' — validated as genuine — and the appointed executor is granted formal legal authority to deal with the estate. The document issued is the 'grant of probate' (or 'letters of administration' where there is no will or no executor was appointed). Without the grant, executors cannot: access the deceased's bank accounts (except through DPS — see below); sell or transfer property; collect investments; distribute assets to beneficiaries. The relationship between IHT and probate creates a well-known 'catch-22': for non-excepted estates, IHT must be accounted for (paid or at least the IHT400 submitted) BEFORE the Probate Registry will process a grant of probate application. But the estate assets — particularly bank accounts and investments — are frozen and inaccessible without the grant of probate. The solution: the Direct Payment Scheme (DPS), personal borrowing, and the instalment option (for property and business assets). For excepted estates (no IHT due), the catch-22 does not apply — executors apply for probate directly without an IHT400 or pre-probate payment.
Breaking the catch-22: Direct Payment Scheme, instalment option, and borrowing
Three practical ways to pay IHT before probate: (1) Direct Payment Scheme (DPS): the simplest and most commonly used method. Most major UK banks and National Savings & Investments (NS&I) participate. Executors request the bank or NS&I to release funds directly to HMRC from the deceased's accounts — the bank pays HMRC before probate, without requiring executors to first get probate. The payment is made from the deceased's own funds. Executors submit a form (different for each institution — available on the institution's bereavement page). Allow at least 6 weeks lead time. The DPS only covers the IHT liability; any estate administration fees still require probate. (2) Instalment option (s227 IHTA 1984): IHT on 'qualifying property' — broadly: land and buildings (including the deceased's home); a controlling shareholding in a company; a business or interest in a business; shares in an investment company meeting certain tests — can be paid in 10 equal annual instalments. The first instalment is due at the 6-month deadline (the same deadline as a lump-sum payment). From April 2023, interest runs on the outstanding instalment balance from the date the first instalment was due at HMRC's late payment rate (currently ~7.5% p.a.). This means the instalment option is interest-bearing — unlike before April 2023 when it was interest-free for most instalment-option property. (3) Personal borrowing/bridging finance: executors (in their personal capacity) borrow funds to pay the IHT; the estate is then liable to reimburse them once probate is granted and assets are accessible. The interest cost of the borrowing is an estate expense. Some banks offer 'probate loans' or bridging finance to estates specifically for this purpose.
The IHT400 — what it is and what to submit
The IHT400 (Inheritance Tax Account) is the main inheritance tax return form. It must be submitted to HMRC for all non-excepted estates. The IHT400 itself is the core document — typically 20+ pages — covering the deceased's personal details, domicile, the estate values (UK and foreign assets), liabilities, and the IHT calculation. The IHT400 is accompanied by numerous supplementary schedules: IHT402 (transferred nil rate band — tNRB — the most commonly needed supplement); IHT403 (gifts in the 7 years before death — details of all gifts; CLTs; PETs); IHT404 (assets held jointly); IHT405 (property details — each property, ownership share, value, with evidence); IHT406 (banks and building society accounts); IHT407 (household and personal goods); IHT411 (listed stocks and shares); IHT412 (unlisted shares, including AIM); IHT413 (business property relief — BPR); IHT414 (agricultural property relief — APR); IHT417 (foreign assets); IHT418 (trusts); IHT421 (request for HMRC to send directly to Probate Registry); IHT430 (reduced 36% rate where ≥10% to charity); IHT435 (Residence Nil Rate Band — RNRB — NOT automatic; must be completed to claim); IHT436 (transferred RNRB — tRNRB — also NOT automatic). Critical point: IHT402 (tNRB), IHT435 (RNRB), and IHT436 (tRNRB) are NOT automatic. Executors must proactively complete and submit these schedules to claim the reliefs. Failing to submit IHT402 means the tNRB is not claimed — on a surviving spouse's estate this can mean missing £325k of additional threshold, costing up to £130,000 in unnecessary IHT. Submit the IHT400 by post to: HMRC Trusts and Estates, BX9 1HT.
IHT deadlines and interest — the cost of delay
IHT deadline: inheritance tax must be paid (and the IHT400 submitted) by the end of the sixth month after the month of death (s226 IHTA 1984). Example: death on 14 June 2026 → IHT due by 31 December 2026. Example: death on 1 January 2026 → IHT due by 31 July 2026. Interest (s233/s234 IHTA 1984): if IHT is not paid by the deadline, HMRC charges interest from the day after the deadline. The interest rate is the HMRC late payment rate — currently set at the Bank of England base rate + 2.5 percentage points. As of June 2026, the late payment rate is approximately 7.5% per annum. Interest accrues daily. Interest is NOT deductible as an estate expense for IHT purposes. Even if executors are waiting for HMRC to issue the IHT421 and cannot complete probate, interest still runs from the deadline. Important: executors can pay 'on account' (a payment to HMRC to stop the interest clock running) even before the IHT400 is fully processed. If the exact IHT liability is uncertain, paying an estimated amount 'on account' and then reconciling once the IHT400 is processed reduces the interest exposure. Penalties: in addition to interest, HMRC can charge penalties for late IHT400 submission (separate from late payment — even if IHT itself is nil, a late IHT400 for a non-excepted estate can attract a penalty).
Timelines — how long does IHT and probate take?
Total timeline for an average non-excepted estate in England and Wales in 2026: (1) Estate valuation and IHT400 preparation: 4-12 weeks (simple); 3-6 months (complex — property valuations, business interests, trust queries); (2) IHT400 processing by HMRC: typically 8-12 weeks from receipt, but HMRC publishes current processing times on gov.uk and these can extend to 16-20+ weeks in peak periods; (3) Grant of probate after PA1P submission and IHT421 receipt: typically 8-16 weeks; (4) Total for a straightforward non-excepted estate with a home and bank accounts: 6-12 months from death to grant of probate. Excepted estate (no IHT): skip the IHT400/IHT421 step entirely — typical total 8-20 weeks from death to grant if no valuation complications. Factors that cause delay: (a) disputed will; (b) contentious estate — Inheritance (Provision for Family and Dependants) Act 1975 claims; (c) complex property portfolios or business interests; (d) foreign assets (may need foreign grant of probate/representation); (e) HMRC queries on the IHT400 — HMRC may raise enquiries about specific values or reliefs claimed, particularly BPR, APR, RNRB; (f) complex trust structures. Probate fees (England and Wales): £273 for estates exceeding £5,000 (since 2019); additional sealed copies £1.50 each (changed from 50p in recent years — check current HMCTS probate fees). Scotland: confirmation via Sheriff Court; different timelines and fees.
Frequently Asked Questions
Do you have to pay inheritance tax before getting probate in the UK?
Yes — for most non-excepted estates. Inheritance tax must be paid (or at least accounted for via the IHT400) before the Probate Registry will process a grant of probate application. This creates the well-known IHT 'catch-22': estate assets are frozen until probate, but IHT must be paid before probate can be granted. The main solutions: (1) Direct Payment Scheme (DPS) — the deceased's bank or NS&I pays HMRC directly from the estate accounts before probate; most major banks participate; request at least 6 weeks in advance; (2) instalment option (s227 IHTA 1984) — IHT on property, business interests, and controlling shareholdings can be paid in 10 annual instalments, with the first instalment due at the normal 6-month deadline; interest-bearing from April 2023; (3) personal borrowing by executors to pay IHT, recovered from the estate post-probate. Exception: excepted estates (where IHT = £0 and the estate meets excepted estate criteria) do NOT need to pay IHT or submit an IHT400 before applying for probate — they apply using PA1P/PA1A directly.
What is the IHT421 and why do you need it for probate?
The IHT421 (Probate Summary) is a document issued by HMRC after they have processed the IHT400 (Inheritance Tax Account). It confirms the IHT position for the estate and is sent directly from HMRC to the Probate Registry (electronically since 2021). The Probate Registry will not issue a grant of probate until the IHT421 has been received from HMRC — this is the mechanism that enforces the requirement to account for IHT before probate. After submitting the IHT400 and paying the IHT, executors wait for HMRC to process the return and issue the IHT421. Typical processing time: 8-12 weeks, but can be longer. Excepted estates do NOT require an IHT421 — the Probate Registry accepts their probate applications without one.
How long does probate take when inheritance tax is involved?
For a non-excepted estate where IHT is due (or where a full IHT400 must be submitted): total time from death to grant of probate is typically 6-12 months for a straightforward estate, and 12-18+ months for complex estates. The key bottleneck is HMRC's processing of the IHT400 — currently 8-12 weeks but can extend to 16-20+ weeks in peak periods. The probate application itself (PA1P/PA1A) takes 8-16 weeks from the Probate Registry's receipt after the IHT421 arrives. For excepted estates (IHT = £0, no IHT400 needed), the IHT processing step is eliminated — total time from death to grant is typically 8-20 weeks. Factors causing delay: complex property valuations; disputed will; HMRC queries on IHT400 schedules (BPR, APR, RNRB); foreign assets requiring overseas representation; Inheritance Act 1975 claims.
What is the Direct Payment Scheme for inheritance tax?
The Direct Payment Scheme (DPS) allows the deceased's bank accounts, building society accounts, and National Savings & Investments (NS&I) holdings to be used to pay inheritance tax directly to HMRC before probate is granted — bypassing the IHT catch-22. How it works: executors complete a DPS request form (available from the participating institution's bereavement team). The bank or NS&I contacts HMRC and transfers the IHT amount directly, releasing funds from the deceased's accounts specifically for IHT payment without requiring a grant of probate first. Executors should allow at least 6 weeks lead time from submitting the DPS request to the IHT payment being made. Most major UK banks and NS&I participate in the DPS, but not all institutions. The DPS only covers the IHT liability — it does not give executors general access to the estate accounts (full access still requires probate). After the IHT is paid via DPS, the executors then submit the IHT400 to HMRC, wait for the IHT421, and apply for probate.
Can executors apply for probate without a solicitor?
Yes — executors can apply for probate personally (as 'personal applicants') without instructing a solicitor. The HMCTS online probate service allows applications to be made online at apply-for-probate.service.gov.uk. The online system guides applicants through the PA1P (for a will) or PA1A (no will) process, allows upload of documents (such as the will and death certificate), and handles payment of the £273 probate fee. Executors can also apply by post using a paper PA1P or PA1A form. A solicitor is NOT required for probate, however it may be helpful for: complex estates with multiple properties or business interests; disputed wills; situations where the executors are not sure about tax liabilities; foreign assets. For straightforward estates with a clear will, personal application is entirely feasible and avoids solicitor costs (which can be significant — often 1-2% of estate value).
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