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

What must executors do before April 5th tax year-end?

1The estate's £3,000 Capital Gains Tax allowance does not roll over — any unused portion is permanently lost after 5th April, so review and time asset disposals before the deadline.
2CGT on inherited property sold during the year must be reported and paid to HMRC within 60 days of completion; missing this deadline triggers penalties and interest.
3IHT400 forms for deaths between 6th April 2025 and 5th March 2026 must be filed within 12 months of death — deadlines fall between April 2026 and March 2027.
4Splitting asset sales across tax years (some before 5th April, some after) can make use of both the current and next year's CGT allowances.
5The deceased has a full CGT allowance for the tax year of death even if they died early in the year; the estate also has its own separate allowance for post-death disposals.

Before 5th April 2026, executors must use the estate's £3,000 Capital Gains Tax allowance (it doesn't roll over), prepare the deceased's final tax return for 2026/26, file outstanding IHT400 forms, and consider timing of asset disposals. After 5th April, unused allowances are lost permanently.

As of January 2026 — References 2026/27 tax year

⏰ Tax Year 2026/26 Ends 5th April 2026

The UK tax year ends at midnight on 5th April 2026. After this date:

Unused Capital Gains Tax allowances are lost - You cannot carry them forward to 2026/27
New tax rates and allowances apply - Check if any Budget changes take effect from 6th April
Tax return deadlines shift - 2026/27 returns due by 31st January 2027
Strategic planning opportunities close - You have just days left to optimise the estate's tax position

You have approximately two weeks from publication of this guide (20th March 2026) until the deadline. Act now.

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.

Capital Gains Tax (Highest Priority)

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

Estates get a £3,000 Capital Gains Tax allowance for 2026/26. This does NOT carry forward to next year, so 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 18% (residential property) or 24% (other assets) for estates (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 you've sold inherited property during 2026/26:

You must report and pay CGT within 60 days of completion
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

Inheritance Tax (IHT400 Deadline)

✓ File IHT400 for Deaths Between April 2025-March 2026

If someone died between 6th April 2025 and 5th March 2026:

Your IHT400 deadline falls between April 2026 and March 2027 (12 months from death)
Check your specific deadline and ensure you're on track to file on time
Late IHT400 filing results in automatic penalties and interest charges
If you're approaching your 12-month deadline, this is your highest priority

✓ 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.

Income Tax Returns

✓ Prepare the Deceased's Final Tax Return

For deaths during 2026/26 (6th April 2025 - 5th April 2026):

You must file a tax return for the deceased covering 6th April 2025 to date of death
Deadline is 31st January 2027 for online returns, but start preparing now
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 Helpline (0300 123 1072) for guidance

✓ Calculate Estate Income Tax

Income received by the estate after death is taxed separately:

Rental income from inherited property during administration
Savings interest on estate bank accounts (£500 allowance for estates)
Dividend income from inherited shares and investments
Estate income is taxed at basic rate (20%) with limited allowances
Consider distributing income-generating assets to beneficiaries sooner

✓ 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

Estate Administration Priorities

✓ Consider Timing of Property Sales

If you're planning to sell inherited property:

Spring property market (March-May) is traditionally the busiest time for sales
Completing before 5th April uses this year's CGT allowance
Completing after 5th April gives you next year's fresh allowance
Consider which timing is most tax-efficient for your specific situation
Factor in completion timescales (typically 8-12 weeks from listing)

✓ 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 CGT allowance for 2026/27 and 2026/27
Income-generating assets distributed to beneficiaries are taxed at their rates (not estate rates)
Consider distributing assets before 5th April if it's tax-efficient
Get professional advice before making large distributions

✓ 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:

2026/26 Self Assessment: Deadline 31st January 2027 (online)
2026/27 tax year begins: New income and gains reported in next year's return
Property CGT reporting: Still 60 days from completion regardless of tax year

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Get Professional Advice

Tax year-end planning for estates can be complex. Don't hesitate to seek professional help if you're unsure:

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 Helpline

For straightforward tax queries about deceased persons:

Phone: 0300 123 1072

Monday to Friday, 8am to 6pm

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

Timeline: Your Next Two Weeks

If you're reading this around 20th March 2026, here's a suggested week-by-week plan to the 5th April deadline:

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

Tax year ends at midnight - any actions after this use 2026/27 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

Two weeks is tight but manageable if you focus on priorities. Start with Capital Gains Tax (the most time-sensitive), then IHT deadlines, then income tax planning. If you're overwhelmed, seek professional help immediately - it's worth the cost to avoid mistakes.

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