Do I need to fill in an IHT400? Excepted estates and the old IHT205

The IHT205 is only used for people who died before 1 January 2022. For deaths on or after that date, there is no IHT205: if the estate is an "excepted estate", you report its values in the probate application and do not send HMRC an inheritance tax form at all. If the estate is not excepted, you need to complete a full IHT400. Many executors find references to the IHT205 in old guidance, bank letters or online forums and are unsure which form applies. This guide explains what changed in 2022, the three types of excepted estate, and the situations where a full IHT400 is needed instead. This guide covers England and Wales. In Scotland, executors apply for confirmation rather than probate, and the process is different.

What was the IHT205, and what replaced it?

The IHT205 was a short return used to tell HMRC about a low value or exempt estate without completing the full IHT400. Two related forms were used alongside it:

• IHT207 was the short return for people who were domiciled abroad and had only limited assets in the UK.
• IHT217 was used to claim a late spouse's or civil partner's unused nil rate band for an excepted estate.

For deaths on or after 1 January 2022, all three forms were replaced by questions in the probate application. You give the estate's gross and net values, and details of any gifts, trusts or foreign assets, when you apply for probate. HMRC receives this information from the Probate Service. If the person died before 1 January 2022, the old forms still apply. GOV.UK keeps the IHT205 for deaths from 6 April 2011 to 31 December 2021 for these cases.

What is an excepted estate?

An excepted estate is one that HMRC does not need a full inheritance tax account for, because it is clear that no tax is payable or the UK assets are small. There are three types.

1. Low value estates

For deaths on or after 1 January 2022, an estate is a low value excepted estate if all of the following apply:

• the gross value of the estate, including the deceased's share of jointly owned assets and certain gifts made in the seven years before death, is no more than the nil rate band (£325,000). This can be up to double where a late spouse's or civil partner's unused nil rate band is transferred and HMRC's conditions are met
• any gifts made in the seven years before death are worth no more than £250,000 in total
• any trust assets are held in a single trust and are worth no more than £250,000
• any foreign assets are worth no more than £100,000
• the person did not make a gift with reservation of benefit, such as giving away their home but carrying on living in it
• the person was domiciled in the UK (deaths before 6 April 2025) or was a long-term UK resident (deaths on or after 6 April 2025)

The test uses the standard nil rate band, not the residence nil rate band. An estate worth £450,000 that leaves a home to children may have no tax to pay once the residence nil rate band is applied, but it is not a low value excepted estate, so an IHT400 is needed to claim that allowance.

2. Exempt estates

An estate can be an exempt excepted estate even if it is worth more than the nil rate band, provided:

• the gross value, including jointly owned assets and gifts, is no more than £3 million
• after debts and the spouse, civil partner or charity exemption, the remaining chargeable value is no more than the nil rate band
• no exemption or relief other than the spouse, civil partner or charity exemption is needed to bring it under that limit
• any gifts in the seven years before death total no more than £250,000, foreign assets are worth no more than £100,000, any trust assets are worth no more than £1 million, and no more than £250,000 of them pass to anyone other than a spouse, civil partner or charity
• there was no gift with reservation of benefit
• the person (and, for the spouse exemption, their spouse or civil partner) met the domicile test for deaths before 6 April 2025, or the long-term UK residence test for deaths on or after that date

The typical example is someone who leaves everything to their husband, wife or civil partner. If the estate is over £3 million, a full IHT400 is needed even if everything passes to the spouse.

3. People who were not long-term UK residents

For deaths on or after 6 April 2025, this category covers people who were not long-term UK residents when they died. (For earlier deaths, it covered people who were domiciled abroad.) The estate qualifies if:

• the person had never been domiciled or deemed domiciled in the UK before 6 April 2025, and had never been a long-term UK resident after that date
• their UK assets were only cash or quoted shares and securities passing under their will, intestacy or by survivorship, worth no more than £150,000 in total
• they did not make gifts from their UK assets of more than £3,000 a year in the seven years before death
• they did not own any indirect interest in UK residential property

This category is often relevant to the international estates we handle. Our guide Where am I domiciled for tax purposes? explains how domicile and residence are decided.

When do you need a full IHT400 instead?

You need to complete the IHT400 if the estate does not meet every condition for one of the three types above. Common reasons are:

• the estate is over the nil rate band and does not all pass to a spouse, civil partner or charity
• you want to claim the residence nil rate band or a transferred residence nil rate band
• you want to claim business property relief or agricultural property relief
• the person made large gifts in the seven years before death, or a gift with reservation of benefit
• the person had an interest in more than one trust, or significant foreign assets
• the estate is over £3 million

Before sending an IHT400 you need an inheritance tax reference number. Our guide on how to get an inheritance tax reference number explains how, and what happens after you've completed your IHT400 form sets out the timeline once it has been sent.

Can HMRC still ask questions about an excepted estate?

Yes. HMRC can ask for a full IHT400 if it has reason to think the estate was not excepted. For deaths on or after 1 January 2022, it normally has 60 days from the grant of probate to do so. If you later find assets you did not know about, and the estate no longer qualifies, you need to tell HMRC and complete an IHT400 within six months of finding out.

Frequently asked questions

Can I still download and use the IHT205?

Only if the person died before 1 January 2022. For later deaths, HMRC will not accept it.

What replaced the IHT217?

For deaths on or after 1 January 2022, you claim a late spouse's unused nil rate band for an excepted estate through the probate application. If you need an IHT400, you claim it on schedule IHT402 instead.

Does a house left to children make the estate excepted?

Not on its own. The residence nil rate band can reduce or remove the tax, but claiming it needs an IHT400.

Do I need to tell HMRC separately if the estate is excepted?

No. The values you give in the probate application are passed to HMRC. Keep your working papers and valuations in case HMRC asks to see them.

How Roche Legal can help

Working out whether an estate is excepted is one of the first things we do when we take on a probate. If you are not sure which route applies, or you have found an asset after probate was granted, contact the Roche Legal team and we can check it for you.

Further reading

• What happens after you've completed your IHT400 form?
• Inheritance tax thresholds, rules and allowances for 2026
• Inheritance tax calculator

This guide is general information, not legal or tax advice. Rules can change, so please speak to us about your situation.

Sources used

• HMRC Inheritance Tax Manual: IHTM06011 (what is an excepted estate), IHTM06012 (low value), IHTM06013 (exempt), IHTM06021 (foreign domiciliaries and non long-term UK residents)
• GOV.UK, IHT205 for deaths from 6 April 2011 to 31 December 2021