How to value an estate for Inheritance Tax and report its value

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If Inheritance Tax is due or full details are needed

You must report the value of the estate to HM Revenue and Customs (HMRC) by completing form IHT400.

You must submit the form within 12 months of the person dying.

You may have to pay a penalty if you miss the deadline.

Getting accurate valuations

You鈥檒l need to give accurate valuations when you complete the form.

You can get any property or land valued by an estate agent or chartered surveyor.

You can also get a professional valuation for anything worth over 拢1,500.

You can estimate the value of cheaper assets, such as electrical items and ordinary household goods.听

For things like cars, jewellery, and paintings, work out how much you would have got if you鈥檇 sold them. You can search for similar items on online marketplaces for this.

Report the value of the estate by completing form IHT400

You need to download and complete form IHT400. Send it to the address on the form.

When completing and submitting the form, make sure you:听

  • answer all relevant questions听
  • complete and send any relevant additional pages (known as 鈥榮chedules鈥�)听听
  • only send a copy of the will (if there is one) and include copies of any official alterations (known as 鈥榗odicils鈥�) - do not send any originals

You can read guidance on how to complete form IHT400.

If you need help completing the form

Contact HMRC鈥檚 Inheritance Tax helpline for help with completing form IHT400.

Once you鈥檝e submitted the form

HMRC will work out how much tax is due, as well as any interest you may need to pay. They will write to you with their calculations and tell you what happens next.

When HMRC may carry out further checks

Occasionally, HMRC may carry out further checks on the information you鈥檝e provided (known as a compliance check).

This may include the Valuation Office Agency (VOA) or Shares and Asset Valuation team (SAV) checking any valuations provided.

If you鈥檝e not heard from HMRC 14 weeks after submitting your IHT400 form, no further checks will be carried out.

If your form is selected for further checks

HMRC will write to you if they鈥檙e carrying out further checks.

HMRC will then phone to explain what they are checking. They鈥檒l do this within 8 weeks of writing to you.

If they ask you for more information, they鈥檒l agree when you need to provide it.

If the VOA or SAV need to check valuations

The VOA or SAV may contact you about the valuations you鈥檝e provided.

If they decide that any of the assets are worth more than the valuations provided, HMRC will send you new calculations once the values have been agreed.

Telling HMRC about changes to the value of an estate

You need to tell HMRC about any changes once the values are final or 18 months after the person died, whichever is sooner.

If the values are not final or it鈥檚 less than 18 months since the person died, you only need to tell HMRC if:

  • there鈥檚 a change in value to land, buildings or unlisted shares
  • you鈥檝e sold land or shares at a loss
  • you鈥檝e sold any assets on which you were paying tax by instalments
  • the value of the estate increases or decreases by more than 拢50,000 before any exemptions or reliefs
  • the person who died made a gift with reservation or was the 鈥榖eneficiary鈥� of a trust when they died
  • further checks are being carried out on the estate

How to tell HMRC about any changes

You鈥檒l need to complete a corrective account form or for estates in Scotland a corrective inventory and account (Scotland). Once completed, send to the address on the form.

You鈥檒l need to calculate any additional tax due and make a payment on account to stop any interest from accruing. HMRC will send final calculations once they have all the details.听

Claiming relief on property or shares sold at a loss

To claim relief on land or buildings sold at a loss within four years of the date of death, complete form IHT38.

To claim relief on shares sold at a loss within 12 months of the date of death, complete form IHT35听

Once completed, send to the address on the form.

Paying Inheritance Tax

You must pay Inheritance Tax by the end of the sixth month after the person died. For example, if the person died in January, you must pay Inheritance Tax by 31 July.

You can pay in yearly instalments on certain things that may take time to sell, such as a house.

You鈥檒l need to get an Inheritance Tax reference number from HM Revenue and Customs (HMRC) at least 3 weeks before paying any tax.

When you can apply for probate

HMRC will send you a unique code confirming you鈥檝e paid enough tax. You鈥檒l need this code in order to apply for probate in England and Wales or confirmation in Scotland.

If you鈥檙e applying for probate in Northern Ireland, HMRC will fill in their part of Schedule IHT421 and send it back to you. You鈥檒l need this in order to apply for probate.

HMRC will usually send the unique code or IHT421 within 20 working days of receiving your IHT400 form or Inheritance Tax payment, whichever is later.

View a printable version of the whole guide

Part of What to do when someone dies: step by step

  1. Step 1 Register the death

    1. Register the death

    Check what to do if:

  2. Step 2 Tell government about the death

    The Tell Us Once service allows you to inform all the relevant government departments when someone dies.

    1. Use the Tell Us Once service to tell government
    2. If you cannot use Tell Us Once, tell government yourself

    You'll also need to tell organisations outside government, like employers and private pension providers, banks, and utility companies.

  3. Step 3 Arrange the funeral

    1. Arrange the funeral
    2. Get help paying for a funeral
    3. Get help paying for a child's funeral

  4. Step 4 Check if you can get bereavement benefits

    You might be eligible for financial help.

    Check if you can get:

  5. and Deal with your own benefits, pension and taxes

    Your tax, benefit claims and pension might change depending on your relationship with the person who died.

    1. Manage your tax, pensions and benefits if your partner has died
    2. Check how benefits are affected if a child dies

  6. and Find bereavement support and services

    Get help with managing grief and the things you need to do when someone dies.

    1. Find bereavement help and support
    2. Find bereavement services from your local council

  7. and Check if you need to apply to stay in the UK

    If your right to live in the UK depends on your relationship with someone who died you might need to apply for a new visa.

    Check the rules if:

    1. Contact UKVI to check the rules for other visas

  8. Step 5 Value the estate and check if you need to pay Inheritance Tax

    To find out if there鈥檚 Inheritance Tax to pay, you need to estimate the value of the property, money and possessions (the 鈥榚state鈥�) of the person who died.

    1. Estimate the value of the estate to find out if you need to pay Inheritance Tax
    1. Find out how to report the value of the estate
    1. You are currently viewing: Pay Inheritance Tax if it鈥檚 due

  9. Step 6 Apply for probate

    You might need to apply for probate before you can deal with the property, money and possessions (the 鈥榚state鈥�) of the person who died.

    1. Check if you need to apply for probate
    1. Apply for probate

  10. Step 7 Deal with the estate

    Pay any debts or taxes owed by the person who's died. You can then distribute the estate as set out in the will or the law.

    1. Deal with the estate
    1. Update property records