Inheritance Tax and Probate UK 2026

UK executors and administrators have to deal with inheritance tax as part of obtaining probate, and the two are closely linked. This guide explains inheritance tax and probate in England and Wales: how estates are reported, the role of form IHT400, the unique code from HMRC, and the deadlines for paying. It cites HMRC and HM Courts and Tribunals Service. Kael Tripton is an editorial publisher and not a regulated legal services provider. This article is information only and is not legal advice. Anyone dealing with a taxable estate should consult an SRA-authorised solicitor, a tax adviser, or Citizens Advice.

How inheritance tax and probate fit together

Inheritance tax and probate are separate processes that have to be coordinated. Inheritance tax is the tax on the estate of someone who has died, dealt with by HMRC, while probate is the grant that gives the personal representatives authority to administer the estate, issued by HM Courts and Tribunals Service. The two connect because, for most estates that owe inheritance tax, the tax has to be reported, and often paid, before the grant of probate or letters of administration can be issued (HMRC, gov.uk, accessed June 2026).

This sequencing is one of the more challenging parts of administering an estate. The personal representatives usually need the grant to access the estate's money, but they may need to deal with the inheritance tax before the grant is issued. Understanding how the reporting works, and which route applies to the estate, is the key to keeping the process moving and avoiding interest charges and delays.

Excepted estates and the end of IHT205

The way an estate is reported depends on whether it is an excepted estate. An excepted estate is broadly one that does not owe inheritance tax and meets certain conditions, for example because it falls below the threshold or qualifies through the spouse or charity exemptions. For deaths on or after 1 January 2022, the rules changed: the old form IHT205, once used to report excepted estates, is no longer used, and the relevant estate values are reported directly within the probate application instead (HMRC, gov.uk, accessed June 2026).

This change simplified reporting for many non-taxpaying estates, which no longer need to send a separate inheritance tax form to HMRC before applying for probate. Personal representatives dealing with a death before 1 January 2022 may still encounter references to IHT205, but for current deaths it does not apply. Confirming whether an estate is excepted, and therefore which reporting route to use, is an early step that determines how the rest of the process runs (HMRC, gov.uk, accessed June 2026).

Form IHT400 and the unique code

Where an estate is not excepted, usually because inheritance tax is due or a full account is required, the personal representatives complete form IHT400, the full inheritance tax account (HMRC, gov.uk, accessed June 2026). This sets out the estate's assets, debts, exemptions, and the tax due. The IHT400 is sent to HMRC, separately from the probate application.

After receiving the IHT400, or the payment, HMRC issues a unique code confirming the tax position, usually within 20 working days (HMRC, gov.uk, accessed June 2026). This code is entered into the probate application, and the application cannot be submitted until it has been received (HM Courts and Tribunals Service, gov.uk, accessed June 2026). This step replaced the older paper process and links the HMRC and HMCTS systems. If the code has not arrived after 20 working days, the personal representatives should contact HMRC. Waiting for the code is a common reason a probate application for a taxable estate cannot proceed immediately.

Paying the tax and the deadlines

Inheritance tax has firm deadlines that shape the whole process. The tax must generally be paid by the end of the sixth month after the person died, and HMRC charges interest on amounts paid after that point (HMRC, gov.uk, accessed June 2026). This can create a timing problem, because the personal representatives may need to pay the tax before the grant has given them access to the estate's funds.

Several mechanisms help with this. Under the direct payment scheme, banks and building societies can pay inheritance tax directly to HMRC from the deceased's accounts before the grant is issued (HMRC, gov.uk, accessed June 2026). For certain assets that cannot easily be sold quickly, such as property and some shares, the tax can be paid in instalments over up to ten years, although interest may apply (HMRC, gov.uk, accessed June 2026). Understanding these options early helps the personal representatives meet the deadline and manage the estate's cash flow while waiting for the grant.

How this connects to wills and probate

Inheritance tax and probate are the practical, after-death side of the tax planning explained in the guide to inheritance tax and wills. How a will is written, including the use of the spouse and charity exemptions and the nil-rate bands, determines how much tax is reported and paid at this stage. The reporting and the unique code are part of the wider process for applying for probate.

The tax also affects practical decisions during administration, such as selling a property to raise funds or because it has been left to be sold. Because the tax must often be dealt with before the grant, and the grant is needed to release most assets, inheritance tax is one of the main factors that shapes how an estate is administered and how long it takes. The will, the tax, and the grant form a single connected sequence from death to distribution.

When to use a solicitor versus doing it yourself

For an excepted estate that owes no inheritance tax, the personal representatives can often handle the reporting within the HMCTS online probate application without specialist help (HMRC and HM Courts and Tribunals Service, gov.uk, accessed June 2026). The simplified rules for non-taxpaying estates make this route accessible for straightforward cases.

A solicitor or tax adviser becomes far more valuable where inheritance tax is due and a full IHT400 account is needed. Calculating the tax, claiming exemptions and reliefs, valuing assets, and meeting the deadlines are detailed tasks, and errors can lead to interest, penalties, or personal liability. Professional help is also valuable where the estate includes a business, agricultural property, trusts, or overseas assets. The Law Society and the Solicitors Regulation Authority maintain registers of authorised solicitors (lawsociety.org.uk and sra.org.uk, accessed June 2026). The decision depends on whether the estate is taxable and how complex it is.

FAQ: inheritance tax and probate

Do I have to pay inheritance tax before probate?

For many taxable estates, yes. Where inheritance tax is due, it generally has to be reported and often paid before the grant of probate is issued (HMRC, gov.uk, accessed June 2026). The tax must be paid by the end of the sixth month after death to avoid interest. Mechanisms such as the direct payment scheme and instalments help personal representatives pay before they can access the estate.

Is form IHT205 still used?

No, not for current deaths. For deaths on or after 1 January 2022, form IHT205 is no longer used, and excepted estates report their values within the probate application instead (HMRC, gov.uk, accessed June 2026). The change simplified reporting for non-taxpaying estates. References to IHT205 only apply to deaths before that date.

What is form IHT400?

Form IHT400 is the full inheritance tax account, used where an estate is not excepted, usually because inheritance tax is due or a full account is required (HMRC, gov.uk, accessed June 2026). It sets out the estate's assets, debts, exemptions, and the tax due. After receiving it, HMRC issues a unique code, usually within 20 working days, needed to submit the probate application.

What is the unique code from HMRC?

For estates that submit an IHT400, HMRC issues a unique code confirming the tax position, usually within 20 working days of receiving the form or payment (HMRC, gov.uk, accessed June 2026). The probate application cannot be submitted until this code is entered (HM Courts and Tribunals Service, gov.uk, accessed June 2026). If it has not arrived after 20 working days, the personal representatives should contact HMRC.

Can inheritance tax be paid in instalments?

Yes, for certain assets. Inheritance tax on assets such as property and some shares can be paid in instalments over up to ten years, although interest may apply (HMRC, gov.uk, accessed June 2026). This helps where assets cannot easily be sold quickly. The direct payment scheme also lets banks pay tax to HMRC directly from the deceased's accounts before the grant is issued.