No Inheritance Tax to pay: why might you still need an IHT400?

10th Nov 2026

Author: Emily Cliffe

When someone dies and it is clear there will be no Inheritance Tax (IHT) to pay, it is natural to assume the probate paperwork will be light. However, it does not always work that way.

This is because how much tax is due and how much information HMRC wants to see are two separate questions. An estate can owe nothing and still need a full IHT account, using form IHT400 and supporting paperwork, before probate can be granted.

Emily Cliffe, from our Wills, Trusts & Estates Team, explains why an IHT400 may still be needed when there is no Inheritance Tax to pay, and what this means for Executors dealing with an estate in England and Wales.

What is an “excepted estate”

For many estates, you do not have to send HMRC a full inheritance tax account. Instead, you report the estate’s value as part of the probate application itself.

An estate that meets the criteria for this simpler reporting process is called an excepted estate. Broadly, there must be no Inhertince Tax to pay and the circumstances of the particular case do not require fuller reporting.

It is not simply a question of whether the estate falls below the standard IHT threshold.

There are several other things to consider before deciding whether an IHT400 is needed.

When might an IHT400 still be needed?

Below are a few examples of when an IHT400 may still be required. Please bear in mind that these are examples, rather than a complete list. Whether an IHT400 is required depends on the circumstances of the estate and the rules applying at the date of death. If you are unsure, seek advice before submitting the probate application.

The extra tax allowance is needed: The Residence Nil-Rate Band (RNRB)

The residence nil rate band is an additional Inheritance Tax allowance of up to £175,000 that can apply when a qualifying home passes to direct descendants, such as children or grandchildren.

Where an estate only has no tax to pay because it relies on this allowance, it is not an excepted estate. A full IHT400 and the relevant supporting forms are required to claim the allowance.

Lifetime Gifts

Gifts made before death can affect the reporting requirements.

For deaths on or after 1 January 2022, the excepted estate rules include a £250,000 limit for certain gifts made in the seven years before death. The type of gift and the exemptions available also matter, so the total amount given away does not tell the whole story.

Gifts where the person continued to benefit also need particular attention. An example is giving away a house but continuing to live in it rent-free. These are known as “gifts with reservation of benefit” and can require a full IHT400.

Trusts

Trusts can also mean that fuller reporting is needed. This can arise where the person made certain gifts into a trust during their lifetime or had an interest in more than one trust.

The value of the trust assets and who receives them also affect the reporting requirements. Having a trust does not automatically mean an IHT400 is needed, but the arrangements should be checked carefully.

Assets Abroad

Foreign assets worth more than £100,000 mean that a full IHT400 is required, even if there is no Inheritance Tax to pay.

It is important to check the rules which apply to the date of death, as reporting conditions and figures change over time.

What does the extra reporting mean?

Completing an IHT400 is a lengthier and more involved exercise than reporting the estates value through the probate application. HMRC requires detailed information about the estate assets, debts and gifts together with any reliefs and exemptions being being claimed.

The time it takes to obtain the Grant of Probate can differ too. GOV.UK currently advises that probate is usually issued within 12 weeks of submitting the application, although it can take longer if further information is needed.

Where an IHT400 is required, there is an additional stage first. You must receive HMRC’s unique probate code before applying. HMRC says this will usually arrive within 20 working days of receiving the IHT400 or any necessary tax payment, whichever is later.

These are guidelines rather than guaranteed timescales. Preparing the paperwork takes time too, particularly if the estate is complex or information is difficult to obtain.

That extra work is why our fee for obtaining the grant can be higher even when there is no Inheritance Tax bill.

What to do next

If you are an Executor and unsure whether an estate needs a full IHT400 or if it can be reported through the probate application only then we can help.

Our Wills, Trusts & Estates Team will review the estate’s details, explain what needs to be reported and give you a clear estimate for handling the application, so you understand what is involved before you start.

Contact us to discuss the estate and the support you need.

Emily can be contacted on 01606 47523 or at ecliffe@butcher-barlow.co.uk.  Alternatively, complete our enquiry form.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This article provides general information about probate in England and Wales and is not a substitute for advice on an individual estate. Information is correct at the time of publication.