What Happens to Investments When You Die UK (2026)? Stocks, Funds & Platform Accounts

Investment platform accounts — commonly known as General Investment Accounts (GIAs), stocks and shares accounts, or dealing accounts — are nominee accounts. The investments are legally held by the platform's nominee company on behalf of the beneficial owner (the investor). On death, the process is: (1) The executor notifies the platform: most major platforms (Hargreaves Lansdown, AJ Bell, Vanguard UK, Interactive Investor, Freetrade, Trading 212, Bestinvest) have dedicated bereavement teams. Notify promptly to freeze the account against any further trading; (2) Documents required: certified copy of the death certificate; grant of probate or letters of administration (once obtained). Most platforms require the grant before they will value or release holdings; (3) The platform provides a date-of-death valuation: the executor needs the mid-market price of all holdings at the date of death for the IHT400 estate valuation. Some platforms provide this free; others charge. Request the valuation promptly — it is needed for the HMRC IHT submission; (4) Options for dealing with the holdings: (a) Sell and transfer cash: the most straightforward option. The platform sells the holdings and transfers the net cash to the estate bank account. This triggers capital gains tax on any gain between the probate value and the actual sale price — but not on any gain up to the date of death; (b) Transfer in-specie to a beneficiary's own account: if a beneficiary wants to retain the specific investments, they can request an in-specie transfer of the holdings directly to their own investment account (same platform or another platform). CGT is triggered only when the beneficiary subsequently sells — charged from the probate value (re-based at death); (c) Transfer in-specie to the estate bank or executor account: less common but possible for the executor to manage during administration; (5) Platform probate thresholds: platforms set their own thresholds below which they may release funds without a grant of probate. HL has typically released small balances informally; most require probate for any material holding.

For inheritance tax purposes, all investments in the estate are valued at the date-of-death market value: (1) Quoted shares and ETFs: valued at the lower of (a) the mid-market value (average of bid and offer price, or the 'middle market' price — also sometimes called the 'quarter-up' method for the Stock Exchange Daily Official List (SEDOL)), specifically: add one-quarter of the difference between the closing bid and the closing offer price to the bid price; or (b) the average of the highest and lowest prices at which the shares were traded on that day. In practice, most executors and IHT valuers use the mid-market price from a financial data provider (e.g., HL's price history, Yahoo Finance, London Stock Exchange) at the close of the date of death (or the last business day before death if the death was over a weekend or public holiday); (2) Unit trusts and OEICs: valued at the bid price (selling price) on the date of death. Most platforms provide this; (3) Investment trusts: quoted on a stock exchange — valued at mid-market price as for ordinary shares; (4) Bonds (corporate and government): valued at the mid-market price of the clean price plus accrued interest on the date of death; (5) VCT shares and EIS investments: VCT shares are quoted — mid-market price. EIS investments are typically in unquoted shares — require a specialist valuation (often HMRC accepts the original cost price if the company is not sold); (6) HMRC scrutiny: HMRC can require supporting evidence for valuations. Retaining brokerage statements, platform screens, or specialist valuer reports is prudent. If the estate includes a significant quoted portfolio, a professional stockbroker valuation avoids queries; (7) IHT overpayment relief: if the portfolio is sold for less than the probate value within 12 months, the executor can claim loss-on-sale relief on Form IHT35 (see iht-overpayment-refund-uk).

Capital gains tax (CGT) interacts with inherited investments through a specific set of rules called the 'CGT re-basing at death': (1) The CGT free uplift at death: when a person dies, their investments are not treated as disposed of for CGT purposes — there is no CGT charge on the increase in value during the deceased's lifetime. The beneficiary who inherits (or the estate) inherits the investments at the date-of-death probate value (the IHT valuation). Any gain up to death is permanently exempt from CGT; (2) CGT when the estate sells during administration: if the personal representative (executor) sells the investments during administration, CGT is calculated from the probate value (not the original cost). Only the gain between the probate value and the actual sale price is chargeable. The annual exempt amount is available to the personal representative for the first 3 tax years of administration (at the same rate as an individual — £3,000 in 2026/27). Personal representatives pay CGT at 18% (basic rate band) or 24% (above basic rate band) on investment gains; (3) CGT when the beneficiary sells after receiving the investment: if the beneficiary receives the investment (by in-specie transfer) and subsequently sells it, their CGT is calculated from the probate value at the date of death. Their own annual exempt amount (£3,000) applies. Rates: 18% (basic rate) or 24% (higher rate) for investment assets; (4) In-specie transfers during administration: transferring investments in-specie from the estate to a beneficiary is not a CGT disposal for the estate — the beneficiary takes ownership at the probate value with no CGT triggered at the time of transfer; (5) 60-day reporting: if the personal representative sells UK residential property inherited by the estate, 60-day CGT reporting applies. For listed investments (shares, funds, ETFs), there is no 60-day reporting requirement — CGT is reported in the annual self-assessment return.

Yes — ISA investments have specific post-death rules that are more favourable than a standard General Investment Account (GIA): (1) ISA wrapper ceases at death: the ISA tax-free status ceases at the date of death. The account becomes a 'continuing account of a deceased investor' (CADI) — the wrapper continues for a limited period (the date the estate is wound up OR 3 years after death, whichever is earlier) during which income and growth remain tax-free. No new subscriptions are allowed; (2) Investments within the ISA: the investments themselves (shares, funds, ETFs) are treated the same way as GIA investments for IHT (included at date-of-death mid-market value) and for CGT (re-based to probate value). There is no IHT exemption for ISA contents; (3) Additional Permitted Subscription (APS) for surviving spouse: a surviving spouse or civil partner can claim an APS equal to the value of the deceased's ISA holdings. The APS is a one-off additional subscription allowance, on top of the normal £20,000 annual limit. It can be used within 3 years of the death OR 180 days after estate administration ends. The APS is funded by the spouse from their own money — it does not require them to inherit the actual ISA investments. This is one of the most valuable and underused estate planning tools for surviving spouses; (4) Platform process: the ISA platform's bereavement process is essentially the same as for a GIA — death certificate, grant of probate (or administration), choice of cash out or in-specie transfer. The APS claim is made directly by the surviving spouse with their own ISA provider (not the deceased's provider); (5) Lifetime ISA (LISA): held for home purchase or retirement. On death, the 25% government withdrawal penalty does not apply — the LISA is closed and the full balance (including the government bonus) is paid to the estate.

Unquoted shares — shares in private limited companies not listed on a public stock exchange — require specialist handling on death: (1) Valuation for IHT: unquoted shares must be valued by agreement with HMRC Shares and Assets Valuation (SAV) team. The valuation is typically based on earnings, dividends, net assets, or a discounted cash flow model, depending on the nature of the business. Minority shareholdings usually attract a discount (10–35%) compared to a pro-rata share of the business value; (2) Business Property Relief (BPR): shares in a qualifying trading business that the deceased has owned for at least 2 years may qualify for 100% BPR, reducing their IHT value to nil. The BPR claim must be made in the IHT400 — HMRC may raise enquiries; (3) Pre-emption rights: many company shareholders' agreements contain pre-emption rights (rights of first refusal) that restrict the transfer of shares on death. The executor must review the company's articles of association and shareholders' agreement before transferring shares to a beneficiary or attempting to sell to a third party; (4) No liquid market: unlike quoted shares, there is often no ready buyer for a minority shareholding in a private company. The estate may be forced to hold shares for months or years before a buyer is found; (5) Deadlock provisions: if the deceased was a 50% shareholder and the surviving shareholder cannot agree a buy-out price, a deadlock situation can arise — potentially requiring a court order or forced winding-up; (6) Cross-option or buy-sell agreement: some business partners take out 'cross-option' or 'buy-sell' life insurance agreements that trigger on death, giving the survivors the option to buy (and the estate the option to sell) the deceased's shares at an agreed price funded by life insurance. This is the most efficient succession planning solution for private company shareholders.