Knowledge Base Article

Inheritance Tax Assessment and Reporting Route

How to check the tax position, choose the right reporting route, and keep evidence ready.

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What this stage is for

This stage answers two questions:

  • Is tax likely to be due?
  • Which reporting route must be used?

In plain English:

  • Excepted estate route: a simpler route for estates that meet current rules.
  • Full account route: the longer route, usually with IHT400 and schedules.

Step-by-step in Estate Suite

  1. Open IHT and review the current filing basis shown from your estate data.
  2. Confirm core deceased details are complete in Assessment (for example domicile and marital status).
  3. Check Assets and Liabilities are up to date with evidence-backed values for major items.
  4. Add relevant exemptions or relief evidence and store support files in Documents.
  5. Confirm the route before probate submission and keep reference numbers in the estate record.
  6. If the route is IHT400, post IHT400 to HMRC before starting probate and allow around 20 working days for HMRC to issue the probate code for the probate application.
  7. If values change after submission, update records immediately and assess whether a corrective filing is needed.

Important date clarity

  • GOV.UK guidance treats IHT205 as a legacy route for deaths on or before 31 December 2021.
  • For deaths after 31 December 2021, do not assume IHT205 applies without checking current GOV.UK guidance.

If information changes after filing

  • Record exactly what changed, when it changed, and why.
  • HMRC uses form C4 for corrections to an IHT account.
  • Keep the correction trail in Documents and link it to related records.

Common mistakes to avoid

  • Filing from incomplete asset data
  • Applying reliefs without supporting evidence
  • Treating an early calculation as final
  • Not logging post-filing corrections clearly

FAQ

Is tax due on every estate?

No. It depends on thresholds, exemptions, reliefs, and estate structure.

What if the route looks borderline?

Pause and verify with current GOV.UK rules before submitting. Borderline cases are where most avoidable delays happen.

Can I keep working while waiting for one valuation?

Yes, but mark the gap clearly and keep a follow-up task open before final submission.