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HMRC internal manual

Inheritance Tax Manual

Deductions from the estate: introduction

Page 8 of the IHT400 should include all debts owed by the deceased at the date of death apart from foreign debts (IHTM27032).

You need to consider whether the deductions claimed are properly allowable.

The general rule (IHTM28381) is that we allow a deduction for debts that the deceased actually owed at the date of death. A debt for inheritance tax purposes is one that is capable of being legally enforced (IHTM28383) and is either

  • imposed by law, or
  • a debt for which consideration (IHTM28382) was received.

The next page (IHTM10362) tells you where you can find instructions for dealing with specific types of liabilities.