How to assess an estate for inheritance tax and declare its value: Check if you need to send all estate details

Before declaring the value of the estate (money, property and possessions of the deceased), check if you need to send all the details of the estate in order to complete the correct forms.

What information you need to provide and how you do it depends on a number of factors, including whether or not inheritance tax is due.

You may have to pay a penalty if you provide inaccurate information.

If inheritance tax is due

You will need to give full estate details if inheritance tax is due.

Find out what to do if inheritance tax is due.

When to send full estate value details even if no tax is due

You will need to send full estate details, even if no tax is owed, if the deceased person:

  • gave more than £250,000 in the 7 years before death (£150,000 if person died on or before December 31, 2021)
  • gave gifts then continued to benefit from them in the 7 years preceding their death

  • left an estate worth over £3m (over £1m if they died on or before December 31, 2021)
  • deceased no later than December 31, 2021 and having inherited part of the inheritance tax threshold from a previous spouse or civil partner
  • was “deemed domiciled” in the UK
  • had foreign assets worth more than £100,000
  • was living permanently outside the UK when he died, but had previously lived in the UK
  • had a life insurance policy paid to someone other than their spouse or civil partner and also had an annuity
  • had increased the value of a capital from a personal pension to be paid after their death, while they were terminally ill or in poor health
  • had agreed that the assets they disposed of during their lifetime would become part of their estate rather than paying a charge on second-hand assets

If the estate includes trusts

You will need to complete a full report if the deceased person:

  • made donations that were paid into trusts
  • held assets worth more than £250,000 in trust (£150,000 if the person died on or before 31 December 2021)
  • held more than one trust

You will also need to complete a full account if the deceased died on or after January 1, 2022 and the assets held in trust passed to a surviving spouse, civil partner or charity and the trust was worth:

  • £1 million or more
  • £250,000 or more after deducting amount passed to surviving spouse, civil partner or charity

When not all details are needed – ‘domains excepted’

You do not have to give full details of the value of an estate if all of the following conditions are true:

  • the estate is considered an “excluded estate”
  • there is no inheritance tax to pay
  • you have verified that none of the reasons under “when you must send full estate value details even if no tax is due” apply

Most estates are excepted estates.

What is considered an excluded estate depends on whether the person died:

  • on or after January 1, 2022
  • no later than December 31, 2021

If the person died on or after January 1, 2022

An estate is generally an excluded estate if one of the following conditions applies:

  • its value is below the current inheritance tax threshold
  • the estate is worth £650,000 or less and any unused threshold is transferred from a spouse or civil partner who died first
  • the deceased left everything to a spouse or civil partner living in the UK or to a qualifying charity and the estate is worth less than £3m (search the Register of Registered Charities in the UK )
  • the deceased was living permanently outside the UK (an ‘overseas domicile’) when they died and the value of their assets in the UK is less than £150,000

If the person died on or before December 31, 2021

An estate is generally an excluded estate if one of the following conditions applies:

What you need to do next

The process you need to follow varies depending on whether you are dealing with:

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