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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Submitting the account and obtaining a grant: procedure where the personal representative or their agent calculates the tax

If they calculate that there is tax to pay the Personal Representative (PR) or agent must obtain a taxpaying reference from the HMRC website before they send any other documents to us. External customers can get an online reference by going to; . We will send them a letter showing their Inheritance Tax reference number and a payslip which will give details of how to pay the tax.

The PR or agent should send the IHT400 and any supplementary schedules, including IHT421 (form C1 inventory in Scotland), to us. If they have calculated that tax is due they should only do this once they have received the Inheritance Tax reference number and payslip from us. They should send their payment and payslip to HMRC Banking, Cumbernauld at the same time they send the IHT400 and other documents to us. If they are using the Direct Payment Scheme the PR or agent should send form IHT423 to the bank or building society at which the account from which funds are being used to pay the tax is held. If the amount that is being paid under the Direct Payment Scheme does not cover all the tax due the agent or PR should also send the balance that of tax due to HMRC Banking, Cumbernauld at the same time.

Once we are happy that any tax (and interest) that is due has been paid or that none is due we will stamp and issue the form IHT421 (form C1 inventory for confirmation in Scotland).

In England and Wales

If a PR is applying for the grant we will send the stamped IHT421 to the Probate Registry where they intend to take out the grant. The grant will be issued within 10 working days of the probate interview.

If an agent is applying for the grant we will send the stamped form IHT421 back to them to send on to the Probate Registry together with any other documents that are needed to obtain the grant. The Probate Registry will issue the grant.

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In Scotland

We will send the stamped form C1 inventory back to the PR or agent. The PR or agent will send the C1 and any other documents need to obtain the grant to the Sheriff Clerk or Commissary Clerk, who will issue confirmation.

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In Northern Ireland

We will send the stamped IHT421 back to the PR or agent. Agents should send the IHT421 and the other papers needed to obtain the grant to the Probate Registry, who will then issue the grant. The PRs will need to arrange and attend an interview with the Probate Registry. The PR must take the stamped IHT421, a photocopy of the form IHT400 and any other papers they need to apply for the grant to the interview. The Probate Registry will then issue the grant.