How to Complete an Inheritance Tax Form

If you’ve been named as an executor of someone’s Will, you’ll need to fill in an Inheritance Tax form to confirm whether tax is due.

Even if you don’t think the estate will need to pay Inheritance Tax, you’ll still need to fill in a form and send it off to HMRC. It will need to be sent at the same time as you submit the probate form.

The deadline for sending Inheritance Tax forms is within one year of the deceased’s death, but the sooner you send it, the better. Before you can be legally authorised to deal with the estate (be granted probate), you’ll need to start paying Inheritance Tax.

This quick guide covers completing the correct Inheritance Tax form. If you need further advice, just get in touch with one of our advisors.  They will give you a free review of your requirements.

Which Inheritance Tax form do you need?

There are two kinds of Inheritance Tax forms. Which one you need depends on the value of the estate. You’ll need to estimate how much the estate is worth to figure out which one to use.

When the value of the estate is less than £325,000

If the value of the estate is less than £325,000, it is unlikely Inheritance Tax will need to be paid, so you’ll need to fill out form IHT205. This is fairly straightforward and can be done online.

If the deceased’s permanent home was located overseas, they died overseas on or after 1 September 2006, and they owned less than £150,000 in UK assets, you’ll need to complete form IHT207 instead.

When the value of the estate is more than £325,000

If you’ve valued the estate at more than £325,000, it’s likely that you’ll need to pay Inheritance Tax and will need to fill in form IHT400. This form tends to be more complex since more evidence is needed.

In addition to the IHT400, you’ll also need to complete a probate summary, known as form IHT421. This is for probate purposes only and is simply a brief overview of some of the assets listed on IHT400. You may also need to complete other supplementary forms, depending on what’s been listed.

Inheritance Tax reference number

If there is Inheritance Tax to pay, you’ll need an Inheritance Tax reference number along with a payslip from HMRC. You’ll need to fill in form IHT422 and attach this with form IHT400.

In order to avoid being charged interest, you should pay Inheritance Tax within six months of the date of death. For certain assets, such as a house, tax can be paid by instalments over a ten year period, but it will incur interest. If you’re paying Inheritance Tax from your personal funds, you’ll be able to claim it back from the estate.

If you have questions about probate and estate administration, get in touch with our experts who can match you with a solicitor who will review your individual circumstances and help you decide on the best way forward.

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Note: First4Lawyers offers this information as guidance, not advice. Before taking any action, you should seek professional assistance tailored to your personal circumstances.