Secure Probate using HMRC Excepted Estates Rules for IHT Returns or Full IHT 400 Returns

On death, to secure probate, HMRC must issue confirmation to the Probate Court that all tax matters have been settled and that HMRC is happy for the estate to be distributed.  It is then that the Pobate Court can issue a 'Grant of Probate' or a 'Grant of Representation' (no Will).

There are two routes to file financial records and taxes due or not with HMRC using the simplified “Excepted Estate” route — or if you need the full IHT 400. 

You need to understand when an estate qualifies as an Excepted Estate and when a full IHT400 is required.  Including thresholds, foreign asset limits, gifts, trusts and 2025 changes to domicile rules.

1.  Use an Excepted Estate Return (Simplified IHT205‑style process) if:

The estate meets all of the following:

• Death on or after 6 April 2004, and
  • Before 6 April 2025: deceased was UK‑domiciled
  • On/after 6 April 2025: deceased was a long‑term UK resident
• Gross estate value is within the relevant limits (see categories below)
• Foreign assets, if any, are ≤ £100,000
• Trust assets, if any, are in a single trust and within limits
• Specified transfers (lifetime gifts) are ≤ £250,000
• No gift with reservation of benefit
• No complex reliefs claimed (e.g., Agricultural and Business Property Relief)

If these conditions fail → Full IHT400.

2.  The Three Types of Excepted Estate

A.  Low‑Value Excepted Estate

Use this where the estate is simply small.

Conditions:

• Gross estate ≤ Nil‑Rate Band (£325,000)
• Trust assets (if any): ≤ £250,000
• Foreign assets (if any): ≤ £100,000
• Specified transfers: ≤ £250,000
• No GWR
• Domicile/long‑term residence rules depending on date of death

Typical scenario:
Modest estate, no foreign assets, no gifts, no trusts.

B.  Exempt Excepted Estate

Use this where the estate is large but fully exempt because it passes to a spouse/civil partner or charity.

Conditions:

• Gross estate ≤ £3,000,000 (post‑1 Jan 2022)
• Net chargeable estate after spouse/charity exemption ≤ NRB (£325,000)
• Trust assets (if any):
  • In a single trust
  • Gross value ≤ £1,000,000
  • Net chargeable value ≤ £250,000
• Foreign assets ≤ £100,000
• Specified transfers ≤ £250,000
• No GWR
• Spouse exemption only allowed if both spouses were UK‑domiciled / long‑term UK residents
• Charity exemption only allowed for absolute gifts

Typical scenario:
£1.5m estate left entirely to a UK‑domiciled spouse → qualifies.

C.  “Transferable NRB” Excepted Estate (post‑2022 rules)

This is the modern replacement for the old IHT217.

Conditions:

• Gross estate ≤ £650,000 (NRB + full transferable NRB)
• No foreign assets
• No trusts
• Gifts in last 7 years within annual exemptions
• Deceased UK‑domiciled / long‑term UK resident

Typical scenario:
Widowed individual, modest estate, no gifts.

Our Fees for 'Excepted Estate' Probate Returns:

See: Excepted Estate Probate Service

3.  When You MUST Use the Full IHT400

A full return is required if any of the following apply:

• Estate > £3 million (even if no tax due)
• IHT is payable
• Foreign assets > £100,000
• Trust assets exceed limits or involve multiple trusts
• Specified transfers > £250,000
• Gifts with reservation
• Business Relief or Agricultural Relief claimed
• Complex lifetime gifting
• Non‑UK domicile / non‑long‑term UK resident (depending on date of death)

Our Fees for Full IHT 400 Probate Returns:

See: Full IHT 400 Probate Service

4.  Comparison Table

5.  To work out exactly which category applies, you need:

• Estimated total estate value
• Whether the deceased was married/widowed
• Any foreign assets?
• Any gifts in the last 7 years?
• Any trusts?
• Date of death (important for the 2025 domicile rule)

Get those and you can pinpoint the correct return route with certainty.

In summary, some estates can use a simplified Inheritance Tax process called an “Excepted Estate” return. This avoids the long IHT400 form.

You can only use the simplified route if the estate is small, fully exempt, or qualifies for the transferable nil‑rate band rules — and only if there are no complicating factors such as large gifts, foreign assets over £100,000, trust interests, or claims for reliefs like Business Relief.

If the estate is large, includes foreign assets, involves trusts, or tax is likely to be due, you must complete the full IHT400.

Worth a Watch ...

Gift With Reservation: IHT & POAT vs GWR

UK Long Term Resident Rules: UK Resident and Long Term Resident

Inheritance Tax Channel: Inheritance

Fees for Probate Services:

Full IHT 400 Probate Service  Excepted Estate Probate Service

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