Inheritance Tax in Scotland: What Scottish Executors Need to Know

IHT Is a Reserved UK-Wide Tax

Unlike income tax bands or stamp duty — which can vary across devolved nations — inheritance tax is a reserved matter. It is set by Westminster and administered by HMRC on the same terms across England, Wales, Scotland, and Northern Ireland. The Scottish Parliament has no power to alter IHT.

This means that a Scottish executor faces exactly the same IHT obligations as an executor in England. The threshold, rates, reliefs, and reporting requirements are identical. What differs is:

• The succession rules that determine who inherits the estate — in Scotland these are governed by the Succession (Scotland) Act 1964 (prior rights, legal rights, and intestacy). See our guide on intestacy rules in Scotland.
• The confirmation process — Scotland uses the Sheriff Court and Sheriff Clerk rather than the Probate Registry. See our guide on what confirmation is in Scotland.
• The timing of IHT payment — in Scotland, IHT must be paid (or at least partially paid) before confirmation can be granted. In England, the position is similar — at least part of IHT must be paid before probate is granted.

For a comprehensive explanation of how IHT works — thresholds, rates, reliefs, and deadlines — see our full UK inheritance tax guide for 2026–27. This page focuses on the practical aspects that Scottish executors need to understand.

IHT Thresholds: A Quick Summary

How Scottish Succession Rules Interact With IHT

Scottish succession law distributes estates differently from English law, but IHT is still calculated on the same basis. Here are the key interactions:

Prior Rights and IHT

Prior rights (the surviving spouse's first claim on the family home, furniture, and financial provision) pass to a surviving spouse or civil partner. These are covered by the spouse exemption and therefore not subject to IHT. The prior rights values (up to £473,000 for the house, £29,000 for furniture, £89,000 or £50,000 financial provision) are part of the estate for IHT calculation purposes, but the spouse exemption means no IHT is due on these amounts where they pass to a surviving spouse.

Legal Rights (Legitim) and IHT

Legitim — children's legal right to a share of the moveable estate — is included in the estate for IHT purposes. Where children claim legitim, their share is part of the estate that does not pass to a spouse (and therefore does not benefit from the spouse exemption). However, where the estate is below the IHT threshold, this interaction does not matter in practice.

A child who elects to claim legitim instead of a legacy under the will cannot avoid IHT on their share — IHT is calculated on the gross estate before distributions to beneficiaries.

Heritable vs Moveable Property

Scottish law distinguishes between heritable property (land and buildings) and moveable property (everything else). This distinction is important for Scottish succession law — legal rights apply only to moveable property. For IHT purposes, however, this distinction does not matter — both heritable and moveable property are included in the taxable estate.

IHT and the Confirmation Process

In Scotland, IHT interacts with the confirmation process in a practical way. Before the Sheriff Clerk can grant confirmation, the executor must:

1. Complete an IHT return — for excepted estates (those below the IHT threshold and meeting HMRC's excepted estate conditions), no separate IHT form is required for deaths on or after 1 January 2022; the executor confirms the excepted estate position as part of the confirmation application. For taxable estates, Form IHT400 must be submitted to HMRC before confirmation is granted.
2. Pay at least part of the IHT due — HMRC will issue a reference number (D18 payslip) once payment is received, which the executor submits to the Sheriff Clerk
3. Submit the IHT reference with the confirmation application

The problem this creates is the "chicken and egg" issue: IHT must be paid before confirmation, but confirmation is needed to access estate funds to pay IHT. Where the estate includes bank accounts, most banks will allow funds to be released directly to HMRC for IHT payment under the Direct Payment Scheme (DPS), even before confirmation is granted.

Key IHT Reliefs Available in Scotland

The following reliefs apply in Scotland on exactly the same terms as in England and Wales:

• Spouse/civil partner exemption — unlimited exemption for assets passing between spouses or civil partners
• Charity exemption — gifts to UK-registered charities are fully exempt; estates leaving 10% or more to charity pay IHT at 36% rather than 40%
• Business Property Relief (BPR) — 50% or 100% relief on qualifying business assets including unquoted shares, business interests, and certain business property. Agricultural land in Scotland qualifies on the same basis as elsewhere in the UK.
• Agricultural Property Relief (APR) — 50% or 100% relief on agricultural property including Scottish farmland, subject to occupation and ownership conditions
• Annual gift exemption — annual gifts of up to £3,000 are IHT-exempt

IHT Deadlines

The IHT deadlines are the same in Scotland as in the rest of the UK:

• IHT is due six months after the end of the month in which the deceased died. Interest accrues after this point.
• For deaths occurring between 1 January and 31 July, payment is due by 31 July in the same year. For deaths between 1 August and 31 December, payment is due by 30 April the following year.
• For property that is difficult to sell quickly (e.g. land, unlisted shares), IHT may be paid in instalments over ten years, provided the instalment option is elected on the IHT400.

Further Reading

• UK inheritance tax guide 2026–27
• What is confirmation in Scotland?
• How to apply for confirmation in Scotland
• Intestacy rules in Scotland
• Estate administration checklist
• Debts after death
• Applying for probate (England and Wales)

Farra helps families navigate estate administration across the UK, including Scottish estates subject to IHT.