An IHT400 is an Inheritance Tax account used to provide HMRC with full details of someone’s estate after they die. Despite the name, it isn’t only required when there is Inheritance Tax to pay.
The key question is whether the estate qualifies as an excepted estate. If it doesn’t, an IHT400 will generally need to be completed before applying for probate. Our Probate Guide and Letters Pack provides further information about the probate process and the documents that may be required.
GOV.UK explains how to establish whether an estate is an excepted estate and when full details need to be reported to HMRC.
Which Estates Need an IHT400?
An IHT400 may be required where:
- Inheritance Tax is due
- The estate does not meet the conditions for an excepted estate
- Full details of the estate need to be reported to HMRC
- Particular assets, gifts, trusts or other circumstances mean additional reporting is necessary
The form itself covers the main details of the estate, but there are also separate schedules for different types of assets and circumstances. These include property, bank accounts, lifetime gifts, foreign assets, trusts, business interests and jointly owned assets. You can find the current IHT400 form and HMRC’s supporting information on GOV.UK.
What If There Is No Inheritance Tax to Pay?
This is where people can get caught out. An estate can have no Inheritance Tax liability and still require an IHT400. For example, exemptions or reliefs might reduce the eventual tax bill, but the estate may still need to be reported in full. HMRC states that the IHT400 is required where there is tax to pay or the estate does not qualify as an excepted estate.
If full details are required, the IHT400 must be sent to HMRC within 12 months of the death and before the probate application is made. Interest on unpaid Inheritance Tax can start earlier, so the tax timetable also needs to be considered.
For simpler estates, the full IHT400 process may not be necessary. Establishing whether the estate qualifies as excepted early on can therefore save a considerable amount of unnecessary paperwork. Our Professional Estate Administration Guide also provides further information about dealing with the administration of an estate.
Read more information on the letters of administration, multiple executors and the documents needed for probate. Explore our latest guides for practical advice on probate applications, administering an estate, dying with debt and dealing with the responsibilities of personal representatives.
Contact Probate Forms for probate advice on 020 9985 9553.
