Tell HMRC
Tax up to the date of death
Value the estate
Report and pay
During the administration
Excepted estate or full details
HMRC's guidance says an estate is usually excepted, so full details aren't needed, if its value is below the Inheritance Tax threshold or it all passed to a spouse, civil partner or qualifying charity, subject to limits. If Inheritance Tax is due, or certain gifts, trusts or foreign assets are involved, you send full details within 12 months of the death and before applying for probate or confirmation.
Inheritance Tax is payable by the end of the sixth month after the death, and payment usually has to start before probate or confirmation is granted. Tax on some assets, such as property, can be paid in yearly instalments.
Income and gains while you administer
The estate may owe Income Tax on rent, business profits or interest, and Capital Gains Tax on assets sold, between the death and distribution. HMRC lets simple estates report by letter at the end of the administration. Others must be registered online and file a trust and estate return, with registration due by 5 October after the tax year.
Related
What else will you need?
- IHT400IHT400 Inheritance Tax accountIHT400 is HMRC's Inheritance Tax account: the full report of an estate's assets, debts, gifts, reliefs and exemptions.
- IHT421IHT421 probate summaryIHT421 is HMRC's probate summary, now used only to apply for a grant of representation in Northern Ireland.
- IHT402IHT402 transfer unused nil-rate bandIHT402 is the HMRC claim, sent with the IHT400, to transfer the unused Inheritance Tax nil-rate band of a spouse or civil partner who died first to the estate of the one who died later.
- IHT435IHT435 / IHT436 residence nil-rate bandIHT435 claims the residence nil-rate band, up to £175,000, when someone who died on or after 6 April 2017 leaves a home they owned to their direct descendants.
- SA100SA100 tax returnThe SA100 is HMRC's main Self Assessment tax return.
- Where to find itGet a copy of your tax returnIf you filed your Self Assessment return through HMRC's online service, sign in to your HMRC online account to view returns you've made before.
Rather we did it?
Countify can handle this for you, for a fixed fee agreed upfront.
Questions
Frequently asked questions.
Does Tell Us Once tell HMRC everything?
It tells HMRC so it can deal with personal tax and cancel benefits such as Child Benefit. If the person was self-employed or owned a business, you must contact HMRC separately.
When is Inheritance Tax due?
By the end of the sixth month after the person died. For example, for a death in January you pay by 31 July, or interest is charged.
What form do I use in Scotland?
Form C1 applies for confirmation, the Scottish equivalent of probate. It gives an inventory of the estate and goes to the Sheriff Clerk for the area where the person was domiciled.
Does the estate pay tax on income after the death?
It can. Income and gains in the administration period are the estate's, reported either informally by letter for simple estates or on a trust and estate return.
Checked against GOV.UK on · Reviewed by Kamran Ishaq FCCA, Founder & CEO, on .
Sources: What to do after someone dies (opens in a new tab) (GOV.UK); Tell Us Once (opens in a new tab) (GOV.UK); Dealing with the estate: settling debts and taxes (opens in a new tab) (GOV.UK); Valuing the estate: check if you need to send full details (opens in a new tab) (GOV.UK); Valuing the estate: if there's Inheritance Tax to pay (opens in a new tab) (GOV.UK); Inheritance Tax: confirmation (C1) (opens in a new tab) (HM Revenue & Customs); Reporting an estate's income to HMRC (opens in a new tab) (HM Revenue & Customs).