Final Countdown: April 5th Tax Year-End Checklist for Executors

⏰ The tax year ends at midnight on 5th April

Naming the years correctly matters here, because it is easy to mislabel them. The tax year that ended on 5th April 2026 was 2025/26; the year running now, to 5th April 2027, is 2026/27. At each year end:

• The unused annual exempt amount for CGT is lost — it cannot be carried into the next year
• Any rate or allowance changes take effect on 6th April — check what was announced for the year beginning
• The Self Assessment clock starts — the return for a tax year ending 5th April is due by the following 31st January if filed online, so the 2025/26 return is due by 31 January 2027

Nothing in Inheritance Tax turns on 5th April. If you are working to an IHT deadline, it is measured from the date of death.

Executor Checklist: Complete Before April 5th

Use this checklist to ensure you've completed all essential tax year-end tasks. Work through it systematically, starting with the highest priorities.

1

Capital Gains Tax (Highest Priority)

✓ Use the Estate's £3,000 CGT Allowance

Personal representatives get the same £3,000 annual exempt amount as an individual — not the £1,500 half-allowance that applies to trustees. Section 1K(7) of the Taxation of Chargeable Gains Act 1992 gives it to them for the tax year of death and the two tax years after it, and for no year beyond that. It does not carry forward, so within those three years it is use it or lose it:

• Review all assets that have increased in value since death
• Consider disposing of assets with gains up to £3,000 before 5th April
• Gains above £3,000 are taxed at a flat 24% for personal representatives — on residential property and on everything else alike. There is no 18% band for an estate, because personal representatives have no basic rate band of their own (see our CGT on inherited property guide for full details)
• If you're planning to sell assets anyway, timing matters

✓ Review Asset Disposal Timing

For assets you plan to sell:

• Sell before 5th April if gains are within the £3,000 allowance
• Delay until after 5th April if gains exceed £3,000 and you want to use next year's fresh allowance
• Split sales across tax years if you have multiple assets (e.g., sell some now, some in April)
• Consider distributing assets to beneficiaries before sale (they get their own CGT allowances)

✓ Check if CGT is Due on Property Sales

If the estate has sold UK residential property:

• Where there is tax to pay, report and pay it within 60 days of completion. GOV.UK says you do not need to report a gain online if your total gains are less than the tax-free allowance
• Check if you've already filed CGT returns for property sales
• Ensure all payments have been made to HMRC on time
• Late filing or payment results in penalties and interest

2

Inheritance Tax (IHT400 Deadline)

✓ Work out your two IHT dates — neither is 5th April

Both run from the end of the month in which the death occurred:

• Payment: 6 months. A death in May means the tax is due by 30 November. Interest runs from that date whether or not you have the grant yet
• The account: 12 months. Section 216(6) of the Inheritance Tax Act 1984 requires personal representatives to deliver the IHT400 within 12 months from the end of the month of death, or within 3 months of first acting as personal representatives if that expires later
• Section 245 sets the penalty for missing the account deadline at £100, a further £100 if it is still outstanding six months after that, and up to £3,000 if it runs past the anniversary and there would have been tax to show. The penalty cannot exceed the tax due, and there is a reasonable excuse defence

✓ Complete Pre-April 6th IHT Planning

If you haven't yet submitted your IHT400:

• Finalise all estate valuations before rates potentially change on 6th April
• Check if any Budget 2026 announcements affect your IHT calculations
• Ensure all supporting documentation is ready (property valuations, bank statements)
• Consider whether to pay IHT in instalments (if available for your estate)

💡 See our detailed IHT400 April Deadline Guide for comprehensive step-by-step instructions on filing Inheritance Tax returns.

3

Income Tax Returns

✓ Prepare the Deceased's Final Tax Return

For a death in the 2025/26 tax year (6th April 2025 to 5th April 2026):

• You must file a tax return for the deceased covering 6th April 2025 to date of death
• That return is due by 31st January 2027 if filed online. Where HMRC issues the return late, the deadline is the one stated in HMRC's letter — its manual at SAM90010 allows 7 days and 3 months from reissue — so read the letter rather than assuming the standard date
• Gather all income details: employment, pensions, savings interest, rental income
• Claim any tax refunds due (HMRC will repay to the estate)
• Use the HMRC bereavement and deceased estate helpline (0300 322 9620) for guidance

✓ Calculate Estate Income Tax

Income received by the estate after death is taxed separately:

• Rental income from inherited property during administration
• Dividend income from inherited shares and investments
• Savings interest on estate bank accounts. The £500 figure often called an "allowance" is not one: section 24B of the Income Tax Act 2007 sets a de minimis, so if the estate's net income for a tax year is £500 or less it is treated as nil — but if it is more, the whole amount is taxable and you do not deduct £500 first. It applies per tax year and does not carry over
• Personal representatives have no personal allowance at all. Estate income is taxed at 20% on savings and other income and at the dividend ordinary rate of 10.75% on dividends
• Income-generating assets that have been distributed produce income taxed at the beneficiary's rates rather than the estate's, which can matter where a beneficiary is a non-taxpayer

✓ Review Previous Years' Tax Returns

Before 5th April, check:

• All previous tax returns (2024/25 and earlier) have been filed and paid
• No outstanding tax bills or investigations from HMRC
• Any tax rebates have been claimed and received by the estate

4

Estate Administration Priorities

✓ Consider Timing of Property Sales

If you're planning to sell inherited property:

• What fixes the tax year is the completion date, not the date you list or exchange
• Completing on or before 5th April uses that year's annual exempt amount; completing on or after 6th April uses the next year's
• Remember the three-year limit: personal representatives have no annual exempt amount at all after the second tax year following the death
• No official body publishes an average time from listing to completion, so do not plan a disposal date around a figure you have read somewhere — ask the agent and the conveyancer handling this sale

✓ Plan Asset Distribution Timing

Strategic distribution timing can save tax:

• Distributing assets to beneficiaries before sale means they use their CGT allowances
• Each beneficiary has their own £3,000 annual exempt amount in each tax year, and their own rates
• Income-generating assets distributed to beneficiaries are taxed at their rates (not estate rates)
• Appropriating an asset to a beneficiary is not itself a disposal for CGT: they take it at probate value, so the gain since death moves to them rather than disappearing
• Distributing before the estate's liabilities are known is the risk that runs the other way — a personal representative who distributes too early can be personally liable for what is still owed

✓ Review Estate Administration Progress

Use this opportunity to review overall progress (see our executor responsibilities checklist for the full picture):

• Are you on track to complete estate administration within 12 months of death?
• Have all debts, funeral expenses, and administration costs been paid?
• Are all assets identified, valued, and ready for distribution?
• Have you communicated timelines to beneficiaries?
• Do you need professional help to complete any outstanding tasks?

What Happens After April 5th?

Understanding what changes on 6th April 2026 helps you plan strategically:

Fresh Tax Allowances

• New £3,000 CGT allowance: The estate gets a fresh allowance for 2026/27
• New income tax year: Fresh personal allowances and rate bands apply
• Beneficiaries' allowances reset: Each beneficiary also gets fresh allowances

Potential Rate Changes

Check if Spring Statement 2026 announced any changes taking effect from 6th April:

• Changes to Inheritance Tax thresholds or rates
• Capital Gains Tax rate or allowance changes
• Income tax band adjustments
• Changes to pension or property tax reliefs

See our Spring Statement 2026 guide for details of any changes announced.

Tax Return Deadlines

After 5th April 2026, key deadlines shift:

• 2025/26 Self Assessment: deadline 31st October 2026 on paper, 31st January 2027 online
• 2026/27 tax year: income and gains from 6th April 2026 go in that year's return, due 31st January 2028 online
• Property CGT reporting: Still 60 days from completion regardless of tax year

Where to get help

If the estate's position is more than you want to work out yourself, these are the bodies whose registers let you find someone qualified, and HMRC's own line for questions about a deceased person's tax:

Tax Advisers and Accountants

For complex tax planning and calculations:

• Chartered Institute of Taxation (CIOT) - Find a qualified tax adviser
• ICAEW Find a Chartered Accountant - Accountants specialising in estates

Probate Solicitors

For legal and estate administration advice:

• Society of Trust and Estate Practitioners (STEP) - Specialist estate practitioners
• Law Society Find a Solicitor - Search for "probate" or "wills and estates"

HMRC bereavement and deceased estate enquiries

For straightforward tax queries about deceased persons:

Phone: 0300 322 9620

Monday to Friday, 8am to 6pm. Closed bank holidays. GOV.UK notes the lines are less busy before 10am.

HMRC staff can advise on tax return requirements, allowances, and basic tax planning for estates.

Timeline: the last fortnight of a tax year

The dates below are written for the run-up to 5th April 2026. The shape holds for any year end — read “Week 1” as the fortnight before 5th April, whichever year you are in:

Week 1: 20th-26th March 2026

Monday-Tuesday: Assess Your Position

• Review all estate assets and their current values
• Calculate potential Capital Gains Tax on any planned sales
• Check your IHT400 deadline and filing status
• List all outstanding tax tasks and prioritise them

Wednesday-Thursday: Make Decisions

• Decide which assets to dispose of before/after 5th April
• Consult tax adviser or solicitor if needed (book appointments NOW)
• Plan distribution timing for income-generating assets
• Check Spring Statement 2026 for any relevant changes

Friday-Weekend: Start Actions

• Instruct sales of assets you've decided to dispose of before 5th April
• Begin preparing deceased's final tax return (gather income details)
• Contact HMRC Bereavement Helpline if you have queries

Week 2: 27th March-5th April 2026

Monday-Wednesday: Complete Actions

• Finalise any asset sales planned for this tax year
• Make any strategic asset distributions to beneficiaries
• Complete and file IHT400 if deadline is approaching
• Pay any CGT or IHT due before the deadline

Thursday-Friday: Final Checks

• Confirm all planned disposals have completed
• Verify all tax payments have been received by HMRC
• File any last-minute returns or forms
• Document all tax year-end actions for estate records

Saturday 5th April: Deadline Day

• The tax year ends at midnight — anything after that uses the new year's allowances
• Online HMRC services may be busy - don't leave filings until the last minute
• Keep evidence of all actions taken and their dates

⚠️ Don't Panic, But Do Act

A fortnight is tight but workable if you take it in order. Capital Gains Tax is the only thing genuinely tied to 5th April, so start there; the Inheritance Tax dates run from the death and will not move whatever happens this fortnight; income tax has until the following January. If a disposal cannot realistically complete in time, that is information rather than a failure — it simply lands in the next year's annual exempt amount.

Sources and Further Reading

• GOV.UK: Capital Gains Tax - Official guidance on CGT rates, allowances, and reporting
• GOV.UK: Inheritance Tax - IHT thresholds, rates, and deadlines
• GOV.UK: Income Tax - Tax rates, allowances, and Self Assessment information
• HMRC Bereavement Helpline - Contact details and opening hours
• Society of Trust and Estate Practitioners (STEP) - Professional body for estate specialists