The order is what trips up executors: in many estates you must settle the tax before you are allowed to collect the money, so the sequence matters as much as the sums. Figures below are current as at August 2026 for England and Wales and are subject to change.
How do probate and inheritance tax work together?
They are two separate steps. Probate, the grant of representation, confirms who can legally administer the estate. Inheritance tax is a 40% charge on the value above the tax-free bands. Most estates pay none, but the position must still be reported before a grant is issued.
The bands set who actually pays. The nil-rate band is £325,000, and a residence nil-rate band of up to £175,000 can apply where a home passes to direct descendants, giving many individuals up to £500,000 and a couple up to £1,000,000. Value above the bands is taxed at 40%, or 36% where at least 10% of the net estate goes to charity, and the bands are frozen until 5 April 2031 (gov.uk, Inheritance Tax, as at August 2026, subject to change). Our inheritance tax guide covers the bands in full.
Do you have to pay inheritance tax before probate?
Usually, yes. You normally need to pay any inheritance tax due, or at least a payment towards it, before the registry will issue the grant of representation (gov.uk, pay your Inheritance Tax bill, as at August 2026, subject to change). This creates the catch: the tax falls due before you can access the accounts that would pay it.
Two deadlines drive this. First, request a payment reference number using form IHT422 at least three weeks before you intend to pay, because it can take that long to arrive (gov.uk, get an Inheritance Tax reference number, as at August 2026, subject to change). Second, the tax must be paid by the end of the sixth month after death, after which HMRC charges interest on the balance. Where the estate is within the bands and qualifies as an "excepted estate", there is no IHT400 and nothing to pay first: you report the values through the probate application itself (gov.uk, apply for probate, as at August 2026, subject to change).
How do you pay inheritance tax before you can access the estate?
Executors are not expected to fund the bill themselves. Several routes let the tax be paid before the grant releases the estate, and the right one depends on what the estate holds.
| Method | How it works | Watch for |
|---|---|---|
| Direct Payment Scheme (form IHT423) | A bank or building society transfers money straight from the deceased's own account to HMRC, before the grant. One form per account. | Needs the IHT422 reference number first; not all providers act quickly. |
| Pay by instalments | Tax on land, buildings, a business or qualifying shares can be spread over 10 annual instalments, the first due at the six-month point. | Interest is added to later instalments; the balance falls due if the asset is sold. |
| Executor or bridging loan | A short-term loan covers the bill until estate funds are released, then is repaid from the estate. | Interest and fees apply; the estate carries the cost. |
| Estate cash, National Savings or life policy | Some balances, National Savings products, or a life policy written in trust can be released or used to meet the bill. | A policy inside the estate is itself part of the taxable value unless in trust. |
Based on gov.uk, paying Inheritance Tax from the deceased's bank account and gov.uk, yearly instalments, as at August 2026, subject to change.
What order do probate and inheritance tax happen in?
The steps run in a set sequence, and doing them out of order causes most delay. Below is the path from death to the grant where inheritance tax is involved, from valuing the estate through to paying the tax and collecting the money once the grant arrives.
- Value the estate at the date of death. Total everything owned and owed at open market value. This figure decides whether any tax is due and which forms apply.
- Work out the tax and pick your bands. Apply the nil-rate band, any residence nil-rate band, and any relief the estate qualifies for, then apply 40% (or 36%) to what remains.
- Get a payment reference number. Send form IHT422 at least three weeks before you plan to pay, so the reference arrives in time.
- Report and pay. File the full account on form IHT400 where required, and pay the tax (often through the Direct Payment Scheme on form IHT423) by the end of the sixth month after death.
- Wait, then apply for the grant. After a full IHT400, allow 20 working days for HMRC to confirm the figures, then apply for probate. The application fee is £526 where the estate is over £5,000 (gov.uk, probate fees, as at August 2026, subject to change).
- Collect, settle and distribute. Once the grant arrives, release the accounts, pay any remaining tax or instalments and debts, then distribute what is left.
What people get wrong: the probate fee is not the inheritance tax
The most common mix-up is treating the court's probate fee and the inheritance tax as one bill. They are not. They go to different bodies, are worked out in different ways, and are paid at different points. One is a fixed court charge; the other scales with the value of the estate above the bands.
| Probate application fee | Inheritance tax | |
|---|---|---|
| Paid to | HM Courts & Tribunals Service | HMRC |
| Amount | Flat £526 where the estate is over £5,000 (nil below) | 40% of the estate above the available bands (36% with 10%+ to charity) |
| When | When you apply for the grant | By the end of the sixth month after death, usually before the grant |
| Depends on estate size? | No, it is a fixed fee | Yes, it scales with value above the bands |
Based on gov.uk, probate fees and gov.uk, Inheritance Tax, as at August 2026, subject to change.
Larger estates have two recent changes to factor in. From 6 April 2026, agricultural and business relief gives 100% relief on the first £2,500,000 of qualifying assets per person, 50% above that, transferable to £5,000,000 per couple (gov.uk, agricultural and business property relief reforms, as at August 2026, subject to change). From 6 April 2027, most unused pension funds are expected to fall within inheritance tax (gov.uk, Inheritance Tax on unused pension funds and death benefits, as at August 2026, subject to change). Both change the figure you pay before probate. Our guide to how inheritance tax is calculated walks through the sums.