Lawson West Solicitor, Harry Mellors, describes the effect that Probate has on UK Inheritance Tax
When someone passes away, two important processes often come into play: Probate and Inheritance Tax (IHT).
While they’re closely linked in practice, it’s a common misconception that one directly affects the other. In reality, Probate does not influence how much Inheritance Tax is due — but it is closely connected to when and how IHT is paid.
In this article, we’ll explain how Probate and IHT intersect, what needs to happen before Probate can be granted, and how to manage the process efficiently.
What Is Probate?
Probate is the legal process of proving that a deceased person’s Will is valid and giving the executor the authority to administer the estate and distribute any assets. The application for processing Probate Administrations in the UK is handled by regional ‘Probate Registries’, part of HM Court Service. If there is no Will, the process is slightly different and involves applying for Letters of Administration, but the overall goal is the same: to access and distribute the deceased’s assets according to the law.
Most financial institutions will not release substantial assets (such as property or investments) until a Grant of Probate (or Letters of Administration) is issued.
What Is Inheritance Tax (IHT)?
Inheritance Tax is a tax on the estate (property, money, and possessions) of someone who has died. In the UK, IHT is charged at 40% on the value of an estate above the tax-free threshold, known as the nil-rate band (currently £325,000 as of 2025, with additional allowances in some cases, such as the residence nil-rate band).
Some estates are exempt from IHT, particularly when everything is left to a spouse or civil partner, or if the estate falls below the nil-rate band. However, when IHT is due, it must be settled, at least in part, before probate can be granted.
Paying IHT Before Probate
Here’s where the connection between IHT and Probate becomes practically important. Even though Probate doesn’t affect the amount of tax due, Probate cannot be granted until HMRC is satisfied that the correct Inheritance Tax has been reported and, where applicable, paid.
HMRC requires IHT to be paid or a payment plan agreed before releasing a unique reference number for the Probate application.
The Unique Probate Code
If the estate’s not ‘excepted’, you must submit full details (the estate’s assets and debts, any gifts made, and any reliefs and exemptions) to HM Revenue and Customs (HMRC) using form IHT400 before applying for Probate. The executor must submit the relevant IHT forms. HMRC will then issue a unique reference number, sometimes referred to as a “Probate Code.”
This number must be included in the Probate application. It’s used to link the estate’s tax records with the Probate process, ensuring that the Probate Registry knows HMRC is aware of the estate and any tax liabilities.
Whilst Probate doesn’t change how much Inheritance Tax is due, it is closely tied to the process of paying it. Executors should be aware that HMRC must be satisfied with the IHT position before Probate is granted, which can delay estate administration if not carefully managed.
If you are an Executor and would like to discuss how Lawson West can help, please do not hesitate to Contact Us.
How can we help?
Please call our talented Probate team on 0116 212 1000 or 01858 445 480, alternatively complete our free Contact Us form and we will get in touch as soon as possible.
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