Inheritance Tax — report and pay on time

Why it matters

IHT (if due) must be reported and the tax usually paid by the end of the sixth month after death — and probate often will not issue until IHT is dealt with.

How to do it

1. Value the estate (property, money, possessions, minus debts).
2. Most estates pay no IHT (it applies above the nil-rate band, with extra allowance for a main home left to descendants and transfers between spouses/civil partners).
3. Even with no tax due you may need to report estate values to HMRC. Pay any tax by the end of the 6th month after death to avoid interest.

Do this first

• Find the will and apply for probate (or letters of administration)