UK Probate + IHT400: 2026/27
UK Probate + IHT400 Process 2026/27: Executor Step-by-Step Guide
Complete probate and IHT400 process guide for 2026/27. 10-step executor timeline from death registration to estate distribution. Grant of Probate vs Letters of Administration vs excepted-estate self-declaration. IHT400 form mechanics + which schedules apply. 6-month IHT payment deadline + 12-month form submission. IHT423 Direct Payment Scheme + commercial IHT loans + 10-year instalment option for property / business. Contentious probate basics + Inheritance Act 1975 claims. April 2027 pension-in-estate reform. Statute - IHT Act 1984, Administration of Estates Act 1925, Wills Act 1837.
2026/27 probate at a glance
NRB / RNRB combined
£500,000
£1,000,000 for married couple
IHT rate
40%
36% if 10%+ to charity
IHT due
6 months
From end of month of death
Probate fee
£273
Flat fee, estates over £5,000
10-step probate timeline
- Step 1
Register the death + obtain death certificate
- Within 5 days of deathRegister at the local Registrar's office (8 days in Scotland). Order 5-10 certified copies upfront (£12.50 each) - banks, insurers, registrars of stocks all require originals not photocopies. The "Tell Us Once" service notifies HMRC, DVLA, DWP, Council, etc. simultaneously.
- Step 2
Locate the Will + assess estate scope
- Week 1-2Check for stored Will (London Probate Service search), solicitor records, home safe. Identify executors named. Where no Will exists, intestacy rules apply (Administration of Estates Act 1925 Section 46) - statutory order: spouse → children → parents → siblings. Apply for Letters of Administration instead of Grant of Probate. Inventory all assets (bank balances at death, property, investments, pensions, life policies, business interests).
- Step 3
Determine: excepted estate OR IHT400 required?
- Week 2-3Estate is "excepted" (no IHT400) if: (a) gross estate < £325,000 (just the NRB), OR (b) gross estate < £3,000,000 AND all assets pass to spouse / charity, OR (c) "low-value" excepted (multiple sub-tests under IHT (Delivery of Accounts) Regulations 2004). All other estates need full IHT400 form (~25 pages + schedules). Self-declaration via probate application form (PA1P / PA1A) for excepted estates - no separate HMRC form since January 2022.
- Step 4
Value all assets at date of death
- Week 3-6Property: RICS Red Book valuation by chartered surveyor (£300-£600 typical). Shares + funds: closing prices on day of death (or quarter-up rule for listed). Bank accounts: balances at midnight on day of death + accrued interest. Joint accounts: half value unless documented otherwise. Personal effects: probate valuer for jewellery / art / antiques > £1.5k. Pensions: usually outside estate pre-April 2027, included in estate post-April 2027 (Autumn Budget 2024 reform).
- Step 5
Calculate IHT due
- Week 6-8Sum of (gross estate + 7-year lifetime gifts) - debts - funeral costs - exempt assets (spouse / charity gifts) - NRB - transferable NRB from pre-deceased spouse - RNRB - transferable RNRB - reliefs (BPR / APR). 40% on excess. 36% rate if 10%+ to charity. Note from April 2026 - BPR / APR capped at £1m for 100% rate (Autumn Budget 2024). Complete IHT400 + relevant schedules (IHT401-IHT430 depending on asset types).
- Step 6
Pay IHT - the funding problem
- Before submitting probate (6-month deadline)IHT must be PAID before Grant of Probate is issued, but executors typically can't access estate assets without probate. Three solutions: (a) IHT423 Direct Payment Scheme - bank pays IHT directly from deceased's account to HMRC; (b) Commercial IHT loan from Tower Street Finance, Brewin Dolphin, etc. (typical rate 9-13% APR); (c) Beneficiary loan - beneficiary advances funds, repaid from estate. Deadline: 6 months from END of month of death (e.g. death March 15 → IHT due September 30). Interest accrues from day 1 of month 7 at official rate (HMRC late payment interest = base + 2.5%).
- Step 7
Submit IHT400 + probate application
- Within 12 months of deathSubmit IHT400 + schedules + IHT421 (probate summary) to HMRC. HMRC processes + issues IHT421 with unique IHT reference number. Submit probate application (PA1P/PA1A) to HM Courts & Tribunals Service (HMCTS) with IHT421, Will, death certificate, fee. Probate fee from 26 January 2022: £273 flat fee for estates above £5k, £0 below. Online service: probate.service.gov.uk. Paper processing 8-16 weeks typical, online 4-8 weeks.
- Step 8
Grant of Probate issued - collect assets
- Month 9-15 typicalExecutor receives sealed Grant of Probate (or Letters of Administration). Send certified copies to banks, share registrars, pension providers, insurance companies. They release funds / transfer assets. Sell property if needed (CGT may apply on post-death gains - use date-of-death valuation as base cost).
- Step 9
Pay debts + outstanding tax
- Month 9-18Settle debts in statutory order (Insolvency Act 1986 / Administration of Estates Act 1925): secured debts (mortgage), funeral costs, testamentary expenses, taxes (IHT, IT, CGT to date of death), unsecured debts, beneficiaries. Place Section 27 Notice (Trustee Act 1925) in London Gazette + local paper protects executors from unknown creditors after 2 months.
- Step 10
Distribute estate + final accounts
- Month 12-24Prepare estate accounts (income, expenditure, distributions). Distribute residue to beneficiaries per Will / intestacy. Tax certificates (R185 form) issued to beneficiaries for income arising during administration period. Final IHT clearance certificate (IHT30) requested from HMRC once all queries resolved - protects executor from later HMRC reassessment.
HMRC + HMCTS forms reference
| Form code | Use | Who files / receives |
|---|---|---|
| PA1P | Probate application WITH Will - online or paper | Executor named in Will |
| PA1A | Letters of Administration - no Will (intestacy) | Closest relative per Section 46 AEA 1925 |
| IHT400 | Full inheritance tax account | Estates not qualifying as excepted |
| IHT421 | Probate summary - HMRC issues after IHT400 | HMRC sends to executor / HMCTS |
| IHT423 | Direct Payment Scheme - bank pays IHT from estate | Executor authorises pre-probate transfer |
| IHT30 | Clearance certificate | Executor requests after estate distributed |
| IHT35 | Loss on sale of shares relief claim | Executor if shares sold post-death < probate value |
| IHT38 | Loss on sale of land relief claim | Executor if property sold post-death < probate value |
| IHT100 | Account of chargeable lifetime transfer | Trustees for chargeable events in trust |
| IHT205 / IHT207 | OBSOLETE since January 2022 | Replaced by self-declaration in PA1P / PA1A |
IHT205 and IHT207 were retired from January 2022. Excepted estates now self-declare values in the probate application (PA1P or PA1A) - no separate HMRC form required.
The IHT funding problem - how executors pay before probate
Catch-22: IHT must be PAID before HMRC issues the IHT421 needed for the probate application, but executors can't access estate assets without Grant of Probate. Four legitimate solutions.
1. IHT423 Direct Payment Scheme
Bank pays IHT directly from deceased's account before probate. Form IHT423 authorises the transfer. Most major banks support this. Best option where deceased held sufficient liquid cash. Zero cost.
2. Commercial IHT loan
Specialist lenders (Tower Street Finance, Beechwood, Brewin Dolphin Trust) advance against estate. 9-13% APR typical. Repaid in full on probate (typically 4-8 months). Useful where deceased's assets illiquid (e.g. property-heavy estate).
3. Beneficiary loan
Beneficiary advances funds personally, repaid from estate at probate. Document loan in writing to preserve repayment claim. Best for family arrangements - avoids commercial loan interest.
4. Instalment option (Section 227 IHTA 1984)
For property / business / agricultural assets only: pay IHT in 10 equal annual instalments. First instalment due 6 months from end of month of death. Interest on outstanding balance. Full balance due immediately if asset sold mid-instalment.
When you DON'T need IHT400 - excepted estate rules
Since January 2022 (Excepted Estates Amendment Regulations 2021), excepted estates skip IHT400 entirely and self-declare in the probate application. Three categories qualify.
| Category | Gross estate cap | Additional conditions |
|---|---|---|
| Low-value excepted | £325,000 | No failed gifts > £250k, no settled property > £250k |
| Exempt excepted | £3,000,000 | Net qualifying value (post spouse/charity gifts) ≤ £325,000, foreign assets ≤ £100k |
| Non-dom excepted | £150k UK | Deceased never UK-resident, no UK gifts in 7y |
Frequently asked questions
What is the difference between Probate and Letters of Administration?
Grant of Probate issued where the deceased left a valid Will and one or more executors named accept the role. Letters of Administration issued where (a) no Will exists (intestacy), (b) Will exists but no executor named / willing / surviving (Letters of Administration with Will Annexed), or (c) executors renounce. Both grants confer the same legal authority - allowing the personal representative to collect, distribute, and administer the estate. Statutory order for who can apply for Letters of Administration: spouse / civil partner → children → grandchildren → parents → siblings (Section 46 Administration of Estates Act 1925). Multiple equal-priority applicants may need to renounce in favour of one administrator. Practical difference: probate process is identical, terminology differs.
When do I need to submit IHT400 vs. self-declare as excepted estate?
Since January 2022 (Inheritance Tax (Delivery of Accounts) (Excepted Estates) (Amendment) Regulations 2021), excepted estates no longer file IHT205 / IHT207 - instead executors self-declare values in the probate application (PA1P / PA1A). Estate is excepted if it falls into one of three categories. (1) Low-value excepted: gross estate ≤ £325,000 (the NRB), no failed gifts > £250k, no settled property > £250k. (2) Exempt excepted: gross estate ≤ £3,000,000, AND net qualifying value (after spouse / charity gifts) ≤ £325,000, no foreign assets > £100k, no failed gifts > £250k. (3) Non-domiciled excepted: deceased never UK-resident, UK assets ≤ £150k, no gifts of UK assets in 7 years. All other estates need IHT400 - a ~25-page form plus schedules IHT401-IHT430 selected by asset types. Typical estate involves IHT400, IHT405 (houses), IHT406 (bank accounts), IHT411 (listed shares), IHT418 (assets held in trust), IHT421 (probate summary).
How much is the probate fee in 2026/27?
Probate court fee: £273 flat fee for estates above £5,000 (since 26 January 2022). £0 fee for estates ≤ £5,000. Same fee whether you use online (probate.service.gov.uk) or paper application. The 2019 proposal for tiered fees up to £6,000 was scrapped. Additional sealed copies: £1.50 each (banks and registrars often want their own original, so order 5-10 copies upfront). NOT the same as IHT: probate fee = HMCTS court fee for processing the grant; IHT = HMRC tax on estate value above NRB / RNRB. Both must be paid before Grant of Probate issued. Other costs: solicitor fees (typical 1-5% of estate for full administration, or fixed-fee £1.5k-£5k for grant application only), surveyor for property valuation (£300-£600), probate valuer for personal effects (£200-£500), Section 27 Notice in London Gazette (~£100).
Can I do probate myself without a solicitor?
Yes - DIY probate is permitted and increasingly common for simple estates. Best for: small estates (under £325k NRB), single beneficiary, no business / agricultural / trust interests, no contentious issues, no foreign assets. Process: complete PA1P online at probate.service.gov.uk + pay £273 fee + upload death certificate + Will. For excepted estates self-declare values in the application. Typical time investment 20-40 hours over 6-12 months. When to use a solicitor: estate > £1m, complex assets (trusts / business interests / agricultural property), missing or unclear Will, multiple executors disagreeing, intestacy with unclear next-of-kin, foreign assets, prospect of inheritance act claim, beneficiaries minor or disabled. Fixed-fee grant-only service: many solicitors now offer "grant extraction only" for £1.5k-£3k - they prepare IHT400 + probate application but executor handles distribution. Middle ground between full administration and DIY.
What is the IHT payment deadline?
IHT must be paid within 6 months from the end of the month of death. So death on 15 March 2026 → IHT due by 30 September 2026. Interest accrues from day 1 of month 7 at the HMRC late payment rate (base rate + 2.5%, currently ~7%+). Interest is not deductible from IHT - charged on top. The funding problem: executors usually can't pay £200k+ IHT bill out of pocket, but can't access estate assets without Grant of Probate, and HMCTS won't issue probate until IHT paid. Solutions: (a) IHT423 Direct Payment Scheme - bank / building society pays IHT directly from deceased's account before probate. Most major banks support this; some require multiple signatures. (b) Commercial IHT loan - specialist providers (Tower Street Finance, Beechwood Solicitors, Brewin Dolphin Trust) lend against estate, 9-13% APR, repaid on probate. (c) Beneficiary loan - beneficiary advances funds personally, recovers from estate. (d) IHT instalment option for property / business / agricultural assets (see below).
What is the IHT instalment option?
IHT on certain "qualifying" assets can be paid in 10 equal annual instalments instead of immediately (Section 227 IHT Act 1984). Qualifying assets: (a) land and buildings (including main residence) - most common use; (b) shares in unlisted companies (where deceased controlled > 50%); (c) business interests (sole trader / partnership); (d) agricultural land. How it works: first instalment due 6 months from end of month of death. Subsequent 9 instalments due on each anniversary. Interest charged on outstanding balance at HMRC official rate. Catch: full balance becomes payable IMMEDIATELY if the qualifying asset is sold during the instalment period - so selling the family home mid-instalment crystallises remaining liability. Best for: estates where main residence makes IHT unaffordable upfront, family wishes to retain property, beneficiary plans to live in property long-term. Choose carefully: 10 years of interest accrues - compare against commercial loan rates and the opportunity cost of capital deployed.
How long does probate take in the UK?
Realistic timeline 9-18 months for most estates. Phase breakdown: Week 1-8: registration, Will location, asset valuation. Month 2-5: IHT400 preparation, IHT payment arrangement, probate application filing. Month 4-8: HMCTS processing the Grant of Probate (online ~4-8 weeks, paper ~8-16 weeks; complex / IHT400 estates can take 4-6+ months at HMCTS). Month 6-12: post-probate asset collection, debt settlement. Month 12-18: distribution + final accounts. Faster cases: excepted estates with online application and simple assets can complete in 6-9 months. Slower cases: contentious probate (12-24+ months), complex business / trust assets (18-36 months), foreign assets requiring overseas probate (2-3+ years). HMCTS delays are the most common single bottleneck - post-2019 reform implementation introduced significant backlog. Online applications now process noticeably faster than paper, but complex IHT400 cases still go through manual HMRC review queues that can add 2-4 months.
What if the estate is insolvent (debts exceed assets)?
Statutory order of payment under Administration of Estates Act 1925: (1) Secured debts (mortgage, secured loans) - paid from sale of secured asset; (2) Funeral expenses (reasonable); (3) Testamentary expenses (probate fees, solicitor costs); (4) Tax (IHT, IT, CGT due at death); (5) Preferential debts (wages, holiday pay owed by deceased as employer if any); (6) Unsecured debts pro rata; (7) Beneficiaries (only if anything left). Executors are NOT personally liable for the deceased's debts beyond estate value - but ARE personally liable if they distribute to beneficiaries while creditors remain unpaid (devastavit claim, Trustee Act 1925). Protection: place Section 27 Notice in London Gazette + local newspaper - protects executor from unknown creditors after 2 months from publication. If clearly insolvent: apply to court for an Insolvency Administration Order (effectively a personal bankruptcy applied to the estate). Bankruptcy trustee then handles distribution per insolvency law. Executor steps back. Don't pay beneficiaries until satisfied all creditors paid - common executor mistake leading to personal liability.
Can a Will be challenged - contentious probate basics?
Yes, on five main grounds. (1) Lack of testamentary capacity (Banks v Goodfellow 1870 - testator understood nature of Will, extent of assets, claims on bounty, sound mind). (2) Undue influence - third party coerced testator (high bar to prove). (3) Lack of knowledge and approval - testator didn't understand contents. (4) Want of due execution - failure to comply with Wills Act 1837 Section 9 (signed by testator in presence of 2 witnesses who also sign). (5) Fraud / forgery - signature forged or testator deceived. Separately, Inheritance (Provision for Family and Dependants) Act 1975 claims by spouse, ex-spouse, child, cohabiting partner of 2+ years, or financial dependant who feels reasonable provision was not made. Time limits: caveat (preventing probate issue) lodged at HMCTS at any time before grant; warning to caveator must be issued within 8 days; Inheritance Act claim within 6 months of grant of probate (extended only in exceptional circumstances). Costs: contentious probate is expensive - £20k-£50k+ typical, often paid from estate even by losing party (depends on judicial discretion).
What happens to pensions in the estate from April 2027?
From 6 April 2027 (Finance Act 2025 + Autumn Budget 2024): undrawn defined-contribution pensions become part of the deceased's estate for inheritance tax purposes. Previously (since Pensions Act 2004) undrawn DC pensions passed to beneficiaries tax-free if death before 75, taxed at beneficiary's marginal income tax rate if 75+. From April 2027: DC pension pot value included in estate at death → subject to NRB / RNRB / IHT 40% above thresholds. Then beneficiary still pays income tax on drawdowns if deceased was 75+ (double-tax for ages 75+ - 40% IHT then beneficiary IT - draft regulations propose marginal-rate calc). DB scheme dependant pensions: lump-sum death benefits within scheme rules generally OUTSIDE the change. Annuities: lump-sum guarantees outside. Pre-April-2027 deaths: existing pre-Budget rules apply. Planning implications: pre-2027 the optimal advice was "spend ISA first, leave pension intact". Post-2027 advice may flip back to "spend pension early, preserve ISAs / property within NRB / RNRB". Watch HMRC final regulations expected late 2026.
What is a deed of variation and when is it used?
Deed of Variation (also "deed of family arrangement") - beneficiaries can redirect their inheritance to others within 2 years of death, and HMRC treats the redirection as if made by the deceased (Section 142 IHT Act 1984). Common uses: (a) redirect inheritance to skip a generation - parent passes to adult child, who has no IHT need, child variates to grandchildren below NRB; (b) equalise unequal Wills - sibling A inherits more than sibling B, A variates a portion to B; (c) provide for someone left out of the Will (e.g. step-children, cohabiting partner); (d) inject into a discretionary trust for IHT planning. Requirements: in writing, signed by all affected beneficiaries, executed within 2 years of death, contains an explicit statement that Section 142 IHTA / Section 62(6) TCGA applies. NOT a way to avoid IHT on the original estate - the original IHT calculation stands. But the deed CAN reduce IHT on the redirected beneficiary's onward estate (e.g. parent variating to skip generation removes the asset from parent's own future estate). Income tax: variations don't backdate for income tax - so any income arising before variation belongs to original beneficiary. Time-critical: 2 years from date of death (not date of probate) is hard deadline.
What is the role of an executor - can I refuse?
Executor role: legal personal representative responsible for collecting assets, paying debts and taxes, distributing the estate per Will / intestacy rules, preparing estate accounts. Duties owed: to beneficiaries (loyalty, care, accounting), to creditors (proper payment in statutory order), to HMRC (correct IHT / IT / CGT). Personal liability risk: executor is personally liable for losses caused by negligence or breach of duty. Get advice for complex estates. Refusing to act ("renunciation"): file a Deed of Renunciation at HMCTS BEFORE doing any executor work ("intermeddling"). Once you've started acting (e.g. instructed a valuer, contacted banks) you've intermeddled and cannot renounce - must apply for Power Reserved or seek court removal. Power Reserved: more flexible - executor temporarily steps aside, other executors act, but Power Reserved executor can step back in later if needed. Useful where 3 executors but only 1 wants to act day-to-day. Number of executors: max 4 can act on grant, but Will can name reserves. Professional executor: solicitor / bank named in Will charges 1-5% of estate value - check Will terms carefully as fees can be substantial.