UK property inheritance tax
and probate

Owners abroad and the new residence test

HMRC’s rules include UK property owned by people based abroad. An address in Türkiye or letting the home does not, by itself, exempt it from IHT. (F1)

From 6 April 2025, long-term UK residence replaced the previous domicile basis. The general test is UK tax residence in at least 10 of the 20 tax years preceding the relevant tax year. A long-term UK resident’s overseas assets can also fall within IHT. (F2)

Leaving the UK may not end that status immediately: depending on residence history, it can continue for up to 10 tax years after departure. Transitional provisions also apply. If you previously lived in the UK, review HMRC’s long-term residence guidance with your adviser rather than relying only on your current address. (F2)

2026–27 thresholds and the residence condition

The amounts below apply to the tax year from 6 April 2026 to 5 April 2027. (F23)

The nil-rate band (NRB) is £325,000. HMRC’s current threshold table fixes this amount until 5 April 2031. It is not a separate allowance for every home or beneficiary; earlier chargeable gifts can affect the amount available. (F3, F8, F9)

The residence nil-rate band (RNRB) is up to £175,000. A qualifying home, or a share of it, must pass to children, grandchildren or other direct descendants as defined by HMRC; a stepchild is included, for example. Leaving a home to any relative does not qualify. The available amount cannot exceed the value of the qualifying share inherited. (F3, F4)

The deceased must have owned and lived in the home at some point. A London flat bought solely to let, in which you never lived, does not qualify for this extra allowance. A UK home owned by someone based abroad can qualify if the other conditions are met. (F4)

Where the estate value used for HMRC’s taper test exceeds £2 million, the RNRB falls by £1 for every £2 above that level. Do not automatically add £325,000 and £175,000 for every home. Unused thresholds may also be transferable to a surviving spouse or civil partner, subject to the relevant conditions. (F4, F8)

Spouse or civil partner exemption

Transfers to a spouse or civil partner are generally covered by the spouse exemption. But the exemption is limited where the person making the transfer is a long-term UK resident and the recipient spouse is not. Do not apply this limit simply because both spouses live abroad when neither has long-term UK residence status. (F5)

In that situation the limit equals the nil-rate band: £325,000 for 2026–27. It applies cumulatively to transfers made by the transferor to a spouse or civil partner during life and on death; it does not restart for each transfer. This spouse exemption is separate from the estate’s available NRB. (F3, F5, F6)

An eligible spouse can elect to be treated as a long-term UK resident for IHT, potentially obtaining full spouse exemption. The election also changes other IHT consequences and can bring overseas assets into scope. It cannot be revoked and lapses only after 10 consecutive tax years of non-UK residence. Review its scope and effective date with a tax adviser. (F6, F7)

The 40% rate and charitable legacies

The standard IHT rate is 40%. It applies to the taxable amount after thresholds and applicable exemptions, not automatically to the home’s entire value. (F8)

A charitable legacy in a will can reduce the rate on some assets to 36% if it meets the requirement of at least 10% of the relevant net value. Setting aside 10% of a home’s gross price does not automatically reduce the rate on the entire estate. An adviser should calculate the relevant net value and the part eligible for the reduced rate. (F8)

The seven-year gift rule (PET)

A qualifying gift from one individual to another may be a potentially exempt transfer (PET). If the donor survives the gift by seven years, IHT will generally not be due on that gift. Earlier death requires the value, date and other transfers to be considered together; transfers to trusts can follow different rules. (F9, F20)

If you keep benefiting from a gifted home, for example by continuing to live there after giving it away, the gift with reservation rules can keep it within your estate. Transferring the title alone does not secure exemption after seven years. (F9)

Payment, IHT400 and other forms

Payment is due within six months of the end of the month of death. For a death in January, for example, the deadline is 31 July. Interest runs on amounts unpaid by the deadline. Payment usually has to start before probate is granted; waiting for the grant does not automatically defer the tax deadline. (F10)

IHT400 is required if tax is payable or the estate does not qualify as an excepted estate. Having no tax to pay does not always remove the IHT400 requirement. Obtain the current form and notes from HMRC. (F11, F15)

Relevant supplementary forms accompany IHT400: IHT401a for a person who was not a long-term UK resident and died on or after 6 April 2025; IHT405 for land and buildings; IHT403 for gifts; and IHT404 for jointly owned assets. IHT435 is used to claim RNRB. Do not confuse the older IHT401 with the current residence form. Your accountant or tax adviser should identify all the schedules required. (F4, F12, F21)

Probate in England and Wales: sale and transfer

Probate is the legal authority to deal with a deceased person’s estate, evidenced by a grant of representation. Where there is a will, the named executor normally applies. Without a will, an entitled relative applies for letters of administration. This process is for England and Wales; Scotland and Northern Ireland have different procedures. (F13, F15)

For registration of a sale or transfer to a beneficiary of a solely owned home, HM Land Registry requires the person dealing with it to hold the necessary grant. Probate may not be needed where property passes automatically to surviving joint tenants. Having no IHT bill and having no need for probate are different questions. (F13, F14)

First value the estate and establish the IHT position. If full reporting is required, submit IHT400 to HMRC, start paying any tax due and wait for HMRC’s application code. Then use the appropriate online or postal probate route; postal applications use PA1P where there is a will and PA1A where there is not. (F13, F15)

Can a will made in Türkiye be used?

A will is not invalid merely because it was made abroad. Under section 1 of the Wills Act 1963, formal validity can be established under the law of the place of execution or a law connected to the testator’s domicile, habitual residence or nationality at the relevant times. This does not mean every Turkish will is accepted without examination. (F16)

HMCTS guidance on GOV.UK lists foreign wills among the cases requiring a paper probate application by a practitioner. That is a procedural rule, not a decision on the validity of a particular will. Review the original, any other wills and translation requirements with your solicitor. (F22)

A foreign will and a foreign grant are also different documents. HM Land Registry says an overseas grant is not acceptable evidence unless resealed by an appropriate UK probate court; if it cannot be resealed, a full UK grant of representation is required. (F14)

Inheritance tax treaties: is Türkiye listed?

HMRC lists IHT conventions with the Republic of Ireland, South Africa, the USA, the Netherlands, Sweden and Switzerland. It also lists older Estate Duty treaties with France, Italy, India and Pakistan, which operate under different rules. Türkiye is not on this list. This conclusion comes from checking HMRC’s published country list. (F17)

The UK–Türkiye double taxation agreement is in force for income and capital gains; do not treat it as an inheritance tax treaty. (F18)

The absence of a treaty does not establish that no relief is possible: HMRC also explains unilateral relief where its conditions are met. Have your tax adviser assess the UK position. For the Türkiye side, consult your accountant in Türkiye. (F17)

A home held through an offshore company

Holding a home through an overseas company does not automatically place it outside IHT. Since 6 April 2017, specified foreign company and partnership interests have been brought within scope to the extent their value is attributable to UK residential property. HMRC’s rules also address indirect ownership chains; a tax adviser should examine the structure. (F19)

Separate guides for rent, sale and purchase taxes

This guide covers taxation and administration of an estate after death. For letting, see letting a UK home while living in Türkiye and NRLS; for a sale, non-resident Capital Gains Tax; and for a purchase, Stamp Duty Land Tax. The rental income and costs calculator does not calculate IHT.