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

By Farra Editorial Team•7 min read•Last updated: 27 January 2026

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

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.

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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.

1

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
2

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.

3

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
4

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

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:

Probate Solicitors

For legal and estate administration advice:

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

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