Comparison Β· 2026/27
Excepted Estate vs Full IHT400 Account
Not every estate needs to complete HMRC's full Inheritance Tax account. Simpler, lower-value estates can often be reported as "excepted", cutting out significant paperwork before probate β while larger or more complex estates must complete the full IHT400. This guide compares both.
At a Glance
| Feature | Excepted Estate | Full IHT400 |
|---|---|---|
| Who it suits | Simpler, lower-value or fully exempt estates | Larger, complex or tax-payable estates |
| Reporting form | Value declared as part of probate application | Full IHT400 + supplementary schedules |
| Time to complete | Faster | Slower β detailed valuations needed |
| Tax always nil? | Often, but not always (exemptions can apply) | May involve tax due |
| Trusts/foreign assets above limits? | Disqualifies excepted status | Reported in full |
Excepted estate value thresholds and conditions are set by HMRC and reviewed periodically β confirm current limits on gov.uk before assuming an estate qualifies.
How Excepted Estate Reporting Works
Since the January 2022 reforms, most excepted estates in England and Wales report the estate value directly as part of the probate application itself, avoiding a separate submission to HMRC. An estate can be excepted because it falls entirely within the nil rate band, qualifies for spouse or charity exemption bringing it under a higher threshold, or is a low-value estate below the relevant limit.
Certain features β such as significant trust interests, foreign assets above set limits, or large lifetime gifts within the previous seven years β can disqualify an estate from excepted status even if the headline value looks modest, so executors should check all the conditions carefully before assuming the simplified route applies.
How the Full IHT400 Account Works
Estates that do not meet the excepted estate conditions β typically because Inheritance Tax is actually payable, or the estate is more complex β must complete the full IHT400 account, together with relevant supplementary schedules for specific asset types, such as the transferable nil rate band, agricultural or business property, or foreign assets.
This process requires more detailed valuations and disclosure, and generally takes longer to prepare than an excepted estate report, but ensures HMRC has the full picture needed to calculate any tax due and apply the correct reliefs. Some Inheritance Tax must usually be paid, or arrangements made via the instalment option or Direct Payment Scheme, before probate can be granted where tax is due.