Free Form IHT400 Inheritance Tax Account Template

Form IHT400 — Inheritance Tax Account

HM Revenue And Customs  ·  Estate Of Alistair Cuthbert Pendlebury  ·  12 September 2026

TO: HM Revenue and Customs (Inheritance Tax)

BY: Hugo Reginald Pendlebury-Hartwell — an executor named in the deceased's will, applying for the Grant of Probate via Form PA1P.

RE: Inheritance Tax Account in the estate of Alistair Cuthbert Pendlebury, deceased.

Filed under the Inheritance Tax Act 1984 s.216(6) (twelve-month filing deadline from the end of the month of death). HMRC IHT reference: IHT2026/PD/4218927. The deceased was domiciled in England and Wales — UK Inheritance Tax applies to the worldwide estate under IHTA 1984 s.4. The deceased left a valid will and a Grant of Probate is being sought via Form PA1P at the Probate Registry of HMCTS.

1. DECEASED IDENTIFICATION

2. PERSONAL REPRESENTATIVE

3. ESTATE VALUATION SUMMARY (PRELIMINARY)

4. FILING AND PAYMENT DEADLINES (IHTA 1984 s.216 + s.226).

(a) Filing deadline (IHTA 1984 s.216(6)): the IHT400 account must be delivered to HMRC within twelve months from the end of the month in which the deceased died. For this estate, the deadline is 30 April 2027.
(b) Payment deadline (IHTA 1984 s.226): Inheritance Tax is payable six months from the end of the month in which the deceased died; interest accrues on unpaid IHT under IHTA 1984 s.233 from that date.
(c) Instalment option (IHTA 1984 s.227-234): IHT on certain assets (land, business interests, qualifying shares) can be paid in ten equal annual instalments; the first instalment is due on the six-month payment deadline; interest applies to outstanding instalments.
(d) Late filing penalties (Finance Act 2008 Schedule 36): initial GBP 100 penalty for filing after the deadline; further GBP 100 if delivered six months after the due date; daily GBP 10 penalties for prolonged delays; tax-geared penalties of 5% of unpaid IHT at six months and a further 5% at twelve months.

5. NRB + RNRB + DOWNSIZING + TNRB COMPUTATION — IHTA 1984 ss.7, 8A, 8D-8M, 8FA. The Inheritance Tax thresholds for 2026/27 (frozen until April 2031 per the November 2025 Budget) are as follows. (a) Nil Rate Band (NRB) — GBP 325,000 per person under IHTA 1984 s.7. (b) Residence Nil Rate Band (RNRB) — GBP 175,000 under IHTA 1984 s.8D-8M, available where a qualifying residential interest is closely inherited by direct descendants (children, grandchildren, step-children, adopted, or descendants of the same). (c) RNRB Taper — under IHTA 1984 s.8D(5), the RNRB is reduced by GBP 1 for every GBP 2 by which the estate exceeds GBP 2,000,000; the full RNRB is lost where the estate exceeds GBP 2,350,000. (d) Downsizing Allowance — IHTA 1984 s.8FA preserves the RNRB amount that would have applied to a former qualifying residence sold or downsized before death, subject to conditions. (e) Transferable Nil Rate Band (TNRB) — IHTA 1984 s.8A — unused NRB from a predeceased spouse / civil partner transfers to the surviving spouse, claimed via Schedule IHT402. (f) Transferable RNRB — IHTA 1984 s.8G — unused RNRB transfers similarly, claimed via Schedule IHT436. A combined-couple maximum of up to GBP 1,000,000 is achievable with full TNRB plus transferable RNRB.

NRB available: GBP 325,000.
RNRB qualifying status: YES — the deceased qualifies for the full Residence Nil Rate Band of GBP 175,000 (2026/27): a qualifying residential interest is being closely inherited by direct descendants (children, grandchildren, step-children, adopted children, or descendants of the same) under IHTA 1984 s.8D-8M.
RNRB amount claimed: GBP 0.
Downsizing Allowance claimed: GBP 0.
RNRB taper applies: YES — the estate value exceeds GBP 2,000,000; the RNRB is tapered by GBP 1 for every GBP 2 of the excess; full RNRB is lost where the estate exceeds GBP 2,350,000.
TNRB claimed: YES — the Transferable Nil Rate Band is claimed under IHTA 1984 s.8A; the first spouse / civil partner predeceased; documentary evidence (death certificate; probate documents of the first death; evidence of unused NRB at the first death) accompanies the IHT402 schedule.
First spouse / CP name: Cynthia Margaret Pendlebury (nee Wexford).
First spouse / CP date of death: 8 November 2009 — TNRB documentary evidence per In Re Smith [2017] EWHC 2071 (Ch).
First spouse / CP NRB used: GBP 0.
Schedules filed: IHT402 (TNRB), IHT435 (RNRB), IHT436 (transferable RNRB).

NRB / RNRB / TNRB computation narrative:
The deceased Mr Alistair Pendlebury died on 22 April 2026; the IHT400 filing deadline is 30 April 2027 (twelve months from the end of the month of death under IHTA 1984 s.216(6)). The NRB computation is as follows. (a) Deceased's own NRB: GBP 325,000 (2026/27, frozen until April 2031). (b) TNRB from the predeceased late wife Cynthia Margaret Pendlebury (died 8 November 2009): the late Cynthia's entire NRB of (then) GBP 325,000 was unused — her estate passed wholly to the late Alistair under the spouse exemption (Cynthia's 2009 will left everything to Alistair absolutely). Documentary evidence accompanies the IHT402 schedule: death certificate; Grant of Probate dated 12 February 2010; IHT205 filed at the time confirming nil IHT and full spouse exemption claimed; the late Cynthia's 2009 will. TNRB amount claimed: GBP 325,000 (100% of NRB unused at first death). (c) RNRB position: the deceased owned Wendover Hall as his sole main residence (valued at GBP 2,860,000 net of mortgage), which is being closely inherited by the deceased's three adult children (Hugo, Lavinia and Crispin) in equal shares under clause 6 of the 2022 will. However, the estate value (GBP 4,712,500 net) substantially exceeds the GBP 2,000,000 RNRB taper threshold under IHTA 1984 s.8D(5); the taper reduces the RNRB by GBP 1 per GBP 2 of excess. The excess is GBP 2,712,500, so the taper reduction is GBP 1,356,250 — far more than the GBP 175,000 RNRB itself. Therefore the RNRB available is NIL (fully tapered away). (d) Transferable RNRB from the late Cynthia: same conclusion — the estate exceeds GBP 2,350,000, so the transferable RNRB of GBP 175,000 is also fully tapered. IHT435 and IHT436 are filed in nil amount for record purposes but no RNRB is actually claimed against tax. (e) Combined available threshold: GBP 325,000 NRB + GBP 325,000 TNRB + GBP 0 RNRB (tapered) + GBP 0 transferable RNRB (tapered) = GBP 650,000. (f) Taxable estate before BPR / APR / charity reliefs: GBP 4,712,500 − GBP 650,000 = GBP 4,062,500.

6. BPR + APR RELIEFS — IHTA 1984 ss.105-124C + FINANCE ACT 2025/2026 REFORM (EFFECTIVE 6 APRIL 2026). Business Property Relief (BPR) under IHTA 1984 ss.105-115 and Agricultural Property Relief (APR) under IHTA 1984 ss.115-124C reduce the value of qualifying business and agricultural assets for IHT purposes. Finance Act 2025/2026 introduced the most significant reform to these reliefs since their inception, effective 6 April 2026:

(a) Combined APR/BPR allowance: GBP 2,500,000 per individual (raised from the original GBP 1,000,000 proposal by the December 2025 Treasury amendment). All qualifying APR and BPR assets within this allowance continue to attract 100% relief.
(b) 50% relief above the allowance: qualifying APR / BPR assets above the GBP 2,500,000 allowance attract 50% relief (effective IHT rate of 20% on those assets).
(c) Transferable allowance: the GBP 2,500,000 allowance is transferable between spouses / civil partners under the Finance Act 2025/2026 reforms; combined spouse / CP cap up to GBP 5,000,000.
(d) AIM and unquoted securities on recognised stock exchanges: 100% BPR is removed from shares quoted on the Alternative Investment Market (AIM) and other recognised stock exchanges; these now attract only 50% relief.
(e) Trust rules: existing trusts that held qualifying property before 30 October 2024 each have their own GBP 2,500,000 allowance; trusts created on or after 30 October 2024 by the same person share one GBP 2,500,000 allowance chronologically.
(f) Schedule IHT413 (BPR) and Schedule IHT414 (APR) capture the detailed computation per asset / parcel.

BPR claimed: YES.
BPR qualifying asset value: GBP 1,850,000.
BPR relief rate: MIXED RELIEF — part of the qualifying business assets falls within the GBP 2,500,000 allowance at 100% relief; the balance above the allowance falls at 50% relief (effective 20% IHT rate); separate computation per category required on Schedule IHT413.
APR claimed: YES.
APR qualifying asset value: GBP 1,420,000.
APR relief rate: MIXED RELIEF — part of the qualifying agricultural property is within the GBP 2,500,000 allowance at 100% relief; the balance above the allowance falls at 50% relief; separate computation per parcel required on Schedule IHT414.
Combined APR/BPR allowance used: GBP 2,500,000 (of the GBP 2,500,000 cap).
Transferable APR/BPR allowance: TRANSFERABLE ALLOWANCE CLAIMED — the unused portion of the GBP 2,500,000 combined APR/BPR allowance from a predeceased spouse / civil partner is being claimed under the Finance Act 2025/2026 transferable-allowance rules (combined spouse / CP cap up to GBP 5,000,000).
Schedules filed: IHT413 (BPR), IHT414 (APR).

BPR + APR computation narrative:
The deceased held two categories of qualifying business / agricultural assets at the date of death. (a) BPR (IHT413): a 64% controlling shareholding in Pendlebury Engineering Limited (an unquoted private company carrying on a precision-engineering trade — entirely qualifying under IHTA 1984 s.105(1)(b)(c); not wholly or mainly an investment business). Probate valuation by Aldworth Corporate Finance LLP at 22 April 2026: GBP 1,850,000. (b) APR (IHT414): a 280-acre farm at Wendover Lower Holding (registered title BM417028), farmed for fifteen years by the deceased's tenant farmer (Mr James Crowther) under a Farm Business Tenancy under the Agricultural Tenancies Act 1995 — qualifying property under IHTA 1984 s.115 (occupied for purposes of agriculture for two years before the deceased's death; the qualifying tenancy meets the s.116 condition). Probate valuation by Saviles agricultural land team at 22 April 2026: GBP 1,420,000. (c) Combined APR/BPR qualifying assets: GBP 3,270,000. (d) Allowance used: the GBP 2,500,000 deceased's own combined APR/BPR allowance under Finance Act 2025/2026 is fully utilised; the transferable allowance from the late Cynthia Pendlebury (who held no qualifying business or agricultural assets at her 2009 death — the spouse exemption applied to the entire estate, so the full GBP 2,500,000 transferable allowance is preserved retrospectively under the FA 2025/2026 transferable-allowance rules) is also claimed in full. Total combined allowance: GBP 5,000,000 (GBP 2,500,000 own + GBP 2,500,000 transferable from late spouse). (e) Result: all GBP 3,270,000 of qualifying APR/BPR assets fall within the GBP 5,000,000 combined allowance, so 100% relief applies — IHT-effective value of these assets is NIL. (f) Without the December 2025 amendment raising the allowance to GBP 2,500,000 (and the further amendment making it transferable between spouses), the result would have been very different: the original GBP 1,000,000 cap would have left GBP 2,270,000 attracting only 50% relief — an additional IHT charge of approximately GBP 454,000.

7. CHARITY 36% REDUCED RATE — IHTA 1984 SCHEDULE 1A. Where at least 10% of the baseline amount of the net estate is left to one or more qualifying charities, IHTA 1984 Schedule 1A reduces the IHT rate on the remaining taxable estate from 40% to 36%. The mechanics are mathematical: a one-percentage-point reduction in rate is achieved by a roughly 10% charitable gift, with the relief on the remaining estate often exceeding the value of the charitable gift itself — meaning the non-charity beneficiaries can be better off after the charitable gift than they would have been without it.

The baseline amount is the net estate after deduction of debts, exemptions (other than the charity exemption), NRB, RNRB, and other reliefs (BPR / APR / etc.) but BEFORE the charity exemption itself. The 10% test is then applied to the baseline amount.

Qualifying charities include UK charities registered with the Charity Commission for England and Wales, the Office of the Scottish Charity Regulator, or the Charity Commission for Northern Ireland; community amateur sports clubs (CASCs) registered with HMRC; and certain EEA / Switzerland / Norway / Iceland charities meeting the management and registration conditions in Schedule 6 to Finance Act 2010.

Schedule IHT430 captures the detailed computation. Where the charitable gift only marginally fails the 10% test, the executor / Personal Representative should consider a Deed of Variation under IHTA 1984 s.142 to top up the charitable component to qualify for the 36% rate (this is the well-known "post-mortem charity uplift" planning route).

Charity gifts value: GBP 475,000.
Qualifies for 36% rate: YES — qualifies for the 36% reduced rate under IHTA 1984 Schedule 1A: at least 10% of the baseline amount (net estate after debts, NRB and other reliefs but before RNRB) is left to qualifying charities; the 36% rate applies to the remaining taxable estate (instead of the 40% standard rate).
Schedule IHT430 filed: YES.

Baseline amount calculation:
Baseline amount computation per IHTA 1984 Schedule 1A: (1) Net estate after debts and funeral: GBP 4,712,500. (2) Less NRB GBP 325,000 + TNRB GBP 325,000 = GBP 650,000. (3) Less APR/BPR relief on GBP 3,270,000 of qualifying assets: GBP 3,270,000 reduction in chargeable estate. (4) Baseline amount (before charity exemption): GBP 4,712,500 − GBP 650,000 − GBP 3,270,000 = GBP 792,500. (5) 10% baseline threshold: GBP 79,250. (6) Charity gifts in will: GBP 475,000 (60% of baseline — well above the 10% threshold). (7) Conclusion: qualifies for the 36% reduced rate under Schedule 1A.

Charity reduced rate narrative:
Clause 8 of the deceased's will of 18 March 2022 makes pecuniary charitable legacies totalling GBP 475,000: GBP 250,000 to The Royal British Legion (registered charity number 219279); GBP 125,000 to Cancer Research UK (registered charity number 1089464); GBP 100,000 to the National Trust for Places of Historic Interest or Natural Beauty (registered charity number 205846). All three are qualifying charities registered with the Charity Commission for England and Wales. The charitable gifts represent 60% of the baseline amount (GBP 475,000 of GBP 792,500), comfortably exceeding the 10% threshold under IHTA 1984 Schedule 1A. The 36% reduced rate applies to the remaining taxable estate. Result: IHT charged at 36% on GBP 4,062,500 − GBP 3,270,000 (APR/BPR relief) − GBP 475,000 (charity exemption) = GBP 317,500 × 36% = GBP 114,300. Plus IHT on the GBP 0 of APR/BPR assets (fully relieved): NIL. Total IHT due: GBP 114,300. The 36% reduced rate saves approximately GBP 12,700 in IHT compared to the 40% standard rate; the executor and family beneficiaries have committed to this charitable allocation in respect of the deceased's lifetime philanthropic activities.

8. 18-SCHEDULE MATRIX PRE-SELECTION — IHT400 SUPPLEMENTARY FORMS. The IHT400 account is accompanied by one or more supplementary schedules where the asset category triggers a separate schedule. The 18 most-used schedules are listed below, with the trigger condition for each. Only the schedules relevant to this estate are filed with HMRC:

• IHT402 — Claim to transfer unused Nil Rate Band (TNRB) — file where a predeceased spouse / CP left unused NRB.
• IHT403 — Gifts and other transfers of value — file where the deceased made any lifetime gifts in the seven years before death OR any gifts with reservation of benefit.
• IHT404 — Jointly owned assets — file where any asset was held as joint tenants or tenants in common.
• IHT405 — Houses, land, buildings and interests in land — file where the estate includes UK real property.
• IHT406 — Bank and building society accounts (and NSandI products) — file where bank balances exceed GBP 50,000 OR where multiple accounts.
• IHT407 — Household and personal goods — file in all but very simple estates (typically all IHT400 estates).
• IHT408 — Household goods given to charity — file where qualifying chattels are donated to charity.
• IHT409 — Pensions — file where the estate includes private pensions, drawdown funds or annuities.
• IHT410 — Life insurance and annuities — file where any policy is in the estate (not written in trust).
• IHT411 — Listed stocks and shares (UK / overseas quoted) — file where the estate includes quoted securities.
• IHT412 — Unlisted stocks, shares and control holdings — file where the estate includes unquoted shares.
• IHT413 — Business and partnership interests (BPR) — file where BPR is claimed.
• IHT414 — Agricultural Relief (APR) — file where APR is claimed.
• IHT415 — Interest in another estate — file where the deceased had a beneficial interest in another estate not yet distributed.
• IHT416 — Debts due to the estate — file where loans / debts owed to the deceased are in the estate.
• IHT417 — Foreign assets — file where the deceased had assets situated outside the UK.
• IHT418 — Assets held in trust — file where the deceased was a beneficiary of a trust under IHTA 1984 ss.49-55.
• IHT430 — Reduced rate of Inheritance Tax (charity 36%) — file where the 36% reduced rate is claimed under IHTA 1984 Schedule 1A.
• IHT435 — Claim for Residence Nil Rate Band — file where RNRB is claimed.
• IHT436 — Claim to transfer unused Residence Nil Rate Band — file where transferable RNRB is claimed from a predeceased spouse / CP.

Schedules pre-selected for this estate:

• IHT402 — TNRB claim from late spouse Cynthia Pendlebury (1995 nil-rate band wholly unused)
• IHT403 — Lifetime gifts in seven years before death (review of bank statements 2019-2026; potential PETs)
• IHT404 — Jointly owned property (review of any tenancy in common arrangements)
• IHT405 — Wendover Hall main residence + Wendover Lower Holding farmland (separate parcels)
• IHT406 — Bank balances (Coutts; Hargreaves Lansdown; Barclays Wealth)
• IHT407 — Household and personal goods (Wendover Hall contents; £180,000 probate valuation)
• IHT409 — Defined-benefit pension drawdown (Pendlebury Engineering Pension Scheme)
• IHT410 — Life policy (Aviva whole-of-life; £85,000 sum assured)
• IHT411 — Listed UK equities portfolio (Hargreaves Lansdown SIPP / GIA)
• IHT412 — Unlisted shares in Pendlebury Engineering Limited (64% controlling holding)
• IHT413 — BPR claim on Pendlebury Engineering Limited shares (£1.85m)
• IHT414 — APR claim on Wendover Lower Holding farmland (£1.42m)
• IHT417 — Foreign assets (none — UK-domiciled UK-situs only)
• IHT430 — Reduced rate 36% claim under Schedule 1A (charity 60% of baseline)
• IHT435 — RNRB claim (nil — fully tapered; filed for record purposes)
• IHT436 — Transferable RNRB claim (nil — fully tapered; filed for record purposes)

Schedule matrix narrative:
The schedule selection follows the deceased's asset categories at 22 April 2026. Sixteen schedules are filed alongside the main IHT400 account, covering: TNRB transfer evidence (IHT402); lifetime gifts review (IHT403, nil expected after bank statement review); the two real-property holdings (IHT405 main residence and farmland — single combined schedule with separate parcels); bank and investment accounts (IHT406, IHT411); household contents (IHT407); the deceased's pension and life policies (IHT409, IHT410); the unquoted-share controlling holding (IHT412, with BPR claim on IHT413); the farmland APR claim (IHT414); the foreign assets nil-return (IHT417); the charity 36% reduced rate claim (IHT430); and the RNRB and transferable RNRB nil-claim entries for record purposes (IHT435, IHT436). The IHT421 probate summary (the link between HMRC and the Probate Registry) will be issued by HMRC to the Probate Registry once HMRC clearance is obtained — anticipated 12-20 weeks from filing.

9. STATEMENT OF TRUTH. The Personal Representative, Hugo Reginald Pendlebury-Hartwell, confirms that the figures, valuations, declarations and answers in this IHT400 account are true and complete to the best of the Personal Representative's knowledge and belief. Truth status: CONFIRMED — the Personal Representative has reviewed and confirmed the account. The Personal Representative understands that incorrect or incomplete declarations may attract penalties under Finance Act 2007 Schedule 24 (inaccuracy penalties) and that fraudulent or negligent declarations may attract criminal sanction under Inheritance Tax Act 1984 s.247 (provision of false information) or the general criminal law on fraud and false statements.