Before applying for probate, executors must find out whether Inheritance Tax is due. Inheritance Tax must be paid by the end of the sixth month after the person died, and you normally have to start paying it before probate is granted. The standard rate is 40% on the part of the estate above the £325,000 threshold; leaving a home to children or grandchildren can raise the threshold to £500,000. The extra £175,000 residence band is reduced by £1 for every £2 the estate is worth over £2 million, so it is gone at £2.35 million. The £325,000 nil-rate band, the £175,000 residence band and the £2 million taper threshold are frozen in law up to and including 2030 to 2031 (Finance Act 2021 s.86, as extended by Finance Act 2026 s.72).
Step by step
- Value the estateMoney, property and possessions at the date of death.
- Check for Inheritance TaxBefore you apply for probate.
- Pay IHT on timeBy the end of the sixth month after the death, or HMRC charges interest.
- Report the estateIf IHT is owed, report within one year using IHT400.
- Apply for probateExecutors named in the will can apply.
Worked example. An estate worth £500,000 with a £325,000 threshold: Inheritance Tax is 40% of £175,000 = £70,000.
| Item | Rule |
|---|---|
| Threshold | £325,000 |
| With a home to direct descendants | Up to £500,000 |
| Residence band taper | £1 less for every £2 over £2 million (gone at £2.35 million) |
| Freeze | In law to 2030 to 2031 (Finance Act 2026 s.72) |
| Rate | 40% (36% if 10% or more goes to charity) |
| Payment due | End of the sixth month after death |
| Instalments | Equal yearly instalments over 10 years on things that may take time to sell |
Frequently asked questions
When is Inheritance Tax due?
By the end of the sixth month after the person died.
Who can apply for probate?
Executors named in the will (or codicil). Without a will, the closest living relative.
Can IHT be paid in instalments?
You can pay Inheritance Tax on things that may take time to sell in equal annual instalments over 10 years. HMRC charges interest on anything not paid by the due date.
Sources
- Applying for probate – GOV.UK
- Inheritance Tax – GOV.UK
- Paying Inheritance Tax – GOV.UK
- Inheritance Tax: residence nil rate band – GOV.UK
- Inheritance Tax thresholds – GOV.UK
- Finance Act 2021, section 86 – legislation.gov.uk
- Finance Act 2026, section 72 – legislation.gov.uk
This guide is general information, not legal or tax advice. Last checked 4 November 2026. Rules change; check the sources above.