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Valuing the estate

If you have been nominated as someone's personal representative you need to value all of the assets (property, possessions and money) the deceased person owned, to work out whether any inheritance tax is due. Tax is only payable if the deceased person's estate is worth more than £312,000 (as of the 2008-09 tax year).

You need to carry out the valuation of the deceased person's estate assets before applying to the Court Service to take over management of their estate (called 'applying for probate' or sometimes 'applying for a grant of representation/ confirmation'). If inheritance tax is due on the estate, the probate or grant won't normally be issued until at least some of the tax has been paid.

• Valuing someone's estate for Inheritance Tax

Forms you need to complete

There are different forms to complete, depending on the value of the estate. Once you've completed the relevant tax forms, you also need to complete the relevant probate form; also shown below. You can learn more about how to apply for probate on the 'Applying for probate' page.

Paying Inheritance Tax - forms you need to complete

You'll find links to these forms below.

There are additional supplementary forms that accompany the IHT400. Use the IHT400 notes to help you decide which you need to complete.

• Download forms PA1 and PA1a (helpnotes) Opens new window
• Applying for probate
• Tax forms for 'excepted estates' Opens new window
• Form C1 inventory and C5 (Scotland) Opens new window
• Form IHT400, helpnotes and supplementary pages Opens new window
• Form IHT421 ‘Probate summary’ Opens new window

Deadline for paying Inheritance Tax

In most cases, Inheritance Tax must be paid within six months from the end of the month in which the death occurs, otherwise interest is charged on the amount owing.

Tax on some assets, including land and buildings (including the deceased person's house), can be deferred and paid in equal instalments over 10 years, but interest will be charged in most cases.

How you make the payment

There are lots of ways to pay the tax - including over the internet and by telephone. Find full details of the payment methods available and what you need to do by following the link below.

• Paying inheritance tax Opens new window

Confirmation of completed payment

Once you have paid all the tax (and any interest due), you can ask HMRC to issue you with a 'clearance certificate' to confirm that (subject to certain conditions) no further tax is due. To request the certificate, you need to complete form IHT30. You can also request this certificate once you have made the final payment if you're paying by instalments.

• Form IHT30 Opens new window

Paying Inheritance Tax on lifetime gifts or transfers

If the person died within seven years of making a gift, or transferring assets into a company or most types of trust, those assets will count as part of their estate and inheritance tax may be due on them. If it is, the person or 'transferee' who received the gift or assets is normally liable to pay the tax. Any tax already paid at the time of a transfer into a trust or company will be taken into account. The personal representative would need to let the relevant people know if that tax must be paid.

To check which types of trust these rules apply to read the article on lifetime transfers below. You can also read more about the rules on lifetime gifts and transfers by following the links below.

• Inheritance Tax on transfers into trusts and companies
• More from HMRC about Inheritance Tax and trusts Opens new window

Further information

The probate and Inheritance Tax helpline: 0845 3020 900 (open from 9.00 am to 5.00 pm Monday to Friday).

• Learn more about inheritance tax