IHT405

IHT405: houses, land and buildings

Last checked 5 October 2026 against HMRC’s forms, guidance and the law · rules version 2026-10-05.1

Schedule IHT405 lists every house, flat, building, piece of land and right over land that the person who died owned in their sole name, each at its open market value on the date of death: "the price which the property might reasonably be expected to fetch if sold in the open market at that time" (Inheritance Tax Act 1984, section 160). On the current schedule (HMRC 04/26), the box 6 total for the deceased's home goes to IHT400 box 51, and the box 7 total for other land and buildings goes to IHT400 boxes 68 to 70. A mortgage is not deducted on IHT405; it goes in IHT400 box 80.

What IHT405 is for

Question 32 on form IHT400 asks: "Did the deceased own any houses, land or buildings or have rights over land in the UK in their sole name?" If the answer is yes, the personal representative (the executor named in the will, or the administrator if there is no will) fills in Schedule IHT405 as part of the full Inheritance Tax account.

It covers the home, other buildings and land (such as a let flat, a lock-up garage or a field) and rights over land such as fishing rights. Jointly owned property goes on Schedule IHT404 instead, and property outside the UK on Schedule IHT417.

On IHT400 pages 7 and 8, houses and land go in column B, where tax may be paid by instalments; tax on column A assets must be paid before the grant of probate (HMRC's IHT400 Notes).

What to gather first

A valuation at the date of death. The IHT400 Notes say valuing land and buildings "can be a complicated area and you're strongly advised to use a professional valuer". GOV.UK says property can be valued "by an estate agent or chartered surveyor". The Notes suggest asking the valuer to allow for the state of repair and any development potential. Choosing the valuer is the executor's decision.
Tenure. Freehold (owned outright) or leasehold; for leasehold, the years left on the lease and the annual ground rent.
Any tenancy agreement if the property was let, and a boundary plan for land with no street number.
The lender's statement of the amount owed at the date of death.

If several valuations give a range, the Notes say "it's probably best to adopt a value that's somewhere in between the highest and lowest values". Enclose a copy of any professional valuation and keep your records.

Filling in IHT405, box by box

Boxes 1 to 5. Only if someone other than the person named at IHT400 box 17 is dealing with the valuation.
Box 6, the deceased's residence. One line per property: item number (column A), address or description (B), postcode (C), tenure (D), any letting, or "vacant" if the property was unoccupied at the date of death (E), and the open market value at the date of death (H). Columns F and G are for reliefs and heritage exemption. Copy the column H total to IHT400 box 51.
Box 7, other land, buildings and rights over land. Same columns. The form says to "include this amount in form IHT400, boxes 68 to 70". For most property that is box 70, which the Notes say covers rental properties, lock-up garages, redundant land and fishing rights. Farms (box 68) and business property or timber (box 69) are outside this guide.
Boxes 8 to 10. Special factors such as major damage or development potential, with any survey or planning approval notice, and whether insurance covers any damage.
Box 11. Any sale, or planned sale, within 12 months of the death (see below).

Two placement rules come from the Notes: a home left empty after a move into a care home still goes in box 51, but a home that was let at the date of death goes in box 70, so on IHT405 it belongs in box 7.

A mismatch between IHT400 and IHT405

The printed wording of IHT400 box 51 says "(Schedule IHT405, box 7)". But IHT405 says its box 6 total (the residence) goes to "form IHT400, box 51" and its box 7 total (other land) to "boxes 68 to 70". The schedule matches its own layout, so this guide follows IHT405.

If the property was jointly owned

For a house owned with someone else, the deceased's share goes on Schedule IHT404 (box 1, then box 5) and from there to IHT400 box 49, as box 51 itself says. IHT404 also asks for a description of the property on IHT405, so take care that its value is not counted twice.

For a share of a house, the IHT400 Notes say "a discount may be appropriate": under English law, "to give us a starting point, you may reduce the arithmetical share of the value of the whole of the property by 10%", which HMRC may revisit after the grant. No discount applies where the other owner was the deceased's spouse or civil partner, and IHT404 says the discount "is not an exemption or relief".

The mortgage goes in IHT400 box 80

IHT400 box 80 is for "Mortgages, secured loans and other debts payable out of property or assets owned outright by the deceased and shown in column B". Give the lender's name, the property and the amount owed at the date of death, with copies of any written evidence. In law, a debt charged on a property is "taken to reduce the value of that property" (Inheritance Tax Act 1984, section 162(4)). Debts are rounded up to the nearest pound and assets down. If there is a mortgage protection policy, the Notes say the mortgage goes in box 80 and the money due from the policy in box 57. A mortgage on a jointly owned property goes on IHT404 box 2.

Worked example

These figures are hypothetical. Someone dies on 17 January 2026 owning, in their sole name, a house valued at £400,000 and a lock-up garage valued at £15,000. The lender confirms £34,999.40 owed at the date of death. Other assets, all in IHT400 column A, total £250,000, and the funeral cost £5,000. Everything passes to the deceased's two children, with no unused nil rate band transferred from a spouse.

Form and box	What goes in	Amount
IHT405 box 6, column H	The house	£400,000
IHT405 box 7, column H	The garage	£15,000
IHT400 box 51	From IHT405 box 6	£400,000
IHT400 box 70	From IHT405 box 7	£15,000
IHT400 box 80	Mortgage of £34,999.40, rounded up	£35,000
IHT400 box 86	Column B total (box 78) less the mortgage	£380,000
IHT400 box 108	Chargeable estate (£245,000 net in column A plus £380,000)	£625,000

For the residence nil rate band, IHT435 box 6 takes the home less the mortgage: £400,000 − £35,000 = £365,000, so the full £175,000 applies. After the £325,000 nil rate band, £125,000 is taxable at 40%: tax of £50,000.

On the IHT400 Calculation, the unsold column B property is £380,000 of £625,000, a proportion of 0.608 (box 26). The tax that may be paid by instalments is 0.608 × £50,000 = £30,400 (box 27): 10 yearly instalments of £3,040 (box 38), from 31 July 2026 to 31 July 2035, with interest added to the later ones. The other £19,600 must be paid before the grant of probate.

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Paying the tax on the house by instalments

Tax on column B assets, including boxes 49, 51 and 70, "may be paid in 10 annual instalments … provided that the assets concerned have not been sold" (IHT400 Notes; Inheritance Tax Act 1984, section 227). The choice is made at IHT400 box 110: "Do you wish to pay the tax on the amounts shown in boxes 95, 97 plus 99 by instalments?" If you tick Yes and any column B property has already been sold, the box asks for its total value.

When. The first instalment is due on the normal due date, the end of the sixth month after the month of death (section 226), and the rest on that date each year. The IHT400 Calculation adds any instalment that is overdue, or due within 30 days, to the amount paid with the account.
Interest. GOV.UK explains that the first instalment carries no interest unless paid late, but each later one carries interest on "the full outstanding tax balance". An ordinary house does not qualify for interest-free instalments (IHTM30213). Late-payment interest has been 7.75% a year since 9 January 2026.
Paying early or selling. The rest can be paid off at any time. If the property is sold, the unpaid tax "shall become payable forthwith", with interest (section 227(4)).

Instalments are optional: all the tax can be paid with the IHT400 instead. See our guides to interest and late payment and paying Inheritance Tax before probate.

Selling the house after the death

IHT405 box 11 asks: "Have any of the properties been sold or do you intend to sell any of them within 12 months of the date of death?" For each one it asks for the sale status and exchange date, the asking or agreed price (without deducting the costs of sale), whether the buyer is "a relative, friend or business colleague of the deceased", any price for fixtures, carpets and curtains, and "Do you want to use the sale price as the value at the date of death?" That last answer is for the personal representatives to give.

If new information casts doubt on the valuation before the grant is applied for, the Notes say "you must reconsider it": in their example, offers of £270,000 or more after a £250,000 valuation suggest the value "may be more like £270,000", and they recommend asking the valuer to consider amending it.

After the IHT400 has been sent, GOV.UK says to tell HMRC about changes "once the values are final or 18 months after the person died, whichever is sooner", or earlier after events such as selling land at a loss, using corrective account form C4. If land or buildings are sold within 4 years of the death for less than the value on the IHT400, HMRC "may be able to reduce the Inheritance Tax"; the claim form is IHT38.

The residence nil rate band

Box 51 also asks: "Have you considered residence nil rate band?" This is an extra amount of up to £175,000, plus any unused amount transferred from a late spouse or civil partner on IHT436, that can pass free of tax when the deceased's home, or a share of it, goes to children or other direct descendants. It is reduced by £1 for every £2 by which the estate is worth more than £2,000,000, and is fixed at £175,000 until 5 April 2031 (Finance Act 2026, section 72). Our guide to IHT435 and IHT436 explains the claim.

Common mistakes

Using an insurance figure or a guess instead of the date-of-death open market value.
Copying the box 7 total into box 51 because of the IHT400 wording.
Putting a jointly owned house in box 51 instead of going through IHT404 to box 49.
Deducting estate agent's or valuation fees, which the Notes say "cannot be deducted".

What happens next

The schedule goes to HMRC with the IHT400. GOV.UK says the Valuation Office may check property values; if it decides a property is worth more, HMRC sends new calculations once the value is agreed. If you have not heard from HMRC 14 weeks after submitting the IHT400, no further checks will be carried out. See also our guide to filling in the IHT400.

Common questions

How is a house valued for Inheritance Tax?

At its open market value on the date of death: the price it might reasonably have fetched if sold on the open market then. HMRC’s notes strongly advise using a professional valuer.

Where does the house go on the IHT400?

On the current IHT405 (HMRC 04/26), the box 6 total for the deceased’s home goes to IHT400 box 51, and the box 7 total for other land and buildings goes to boxes 68 to 70, usually box 70.

Where does the mortgage go?

In IHT400 box 80, not on IHT405. A mortgage on a jointly owned house goes on Schedule IHT404.

Can the tax on a house be paid in instalments?

Yes, in 10 yearly instalments while the property is unsold, if you choose this at IHT400 box 110. Interest is charged on the unpaid balance, and selling the property makes the rest payable.

What if the house is sold for less than the value on the IHT400?

If land or buildings are sold within 4 years of the death for less than the value on the IHT400, HMRC may be able to reduce the tax. The claim is made on form IHT38.