Farra is a death administration assistant for UK families. Get step-by-step guidance for registering a death, applying for probate, notifying banks, and managing bereavement admin. From essential documents to practical checklists, Farra simplifies estate paperwork and funeral-related tasks so you can focus on what matters.
This guide has not been checked against its sources
We re-checked our most-read guides against GOV.UK and the other official sources in September 2026. This one was not among them, so nobody has confirmed its figures, deadlines or process steps since it was written. Treat it as a starting point and confirm anything that matters on GOV.UK before you act on it.
IHT405 is one of the most important supplementary schedules attached to the IHT400. Property is often the largest single asset in an estate, and getting the valuation right is critical — both to avoid overpaying inheritance tax and to avoid HMRC enquiries that can significantly delay the administration of the estate.
IHT405 is the schedule used to list all property, land, and buildings in which the deceased held an interest at the date of death. This includes:
Each property is listed separately on IHT405 with its address, tenure (freehold or leasehold), details of any joint ownership, any outstanding mortgage, and the open market value at the date of death.
The general rule is that all UK property owned by the deceased goes on IHT405. This includes:
Foreign property is generally reported on IHT417 (Foreign Assets) rather than IHT405. If you are unsure, include it on IHT417 and note the property details there.
If the deceased owned agricultural or business property for which you are claiming Agricultural Property Relief (APR) or Business Property Relief (BPR), you still list the property on IHT405 at its open market value and then claim the relief separately on IHT413 or IHT414.
The correct valuation basis for IHT405 is the open market value at the date of death — that is, the price the property would fetch if sold between a willing buyer and a willing seller on that date, with both parties having full knowledge of the market.
There are two main approaches to obtaining a valuation:
Do not use:
HMRC's notes say it will usually ask the Valuation Office Agency (VOA) for its opinion of the value of the deceased's property. If the VOA cannot accept the figures you used, it will try to agree a value with you — and if the agreed value is higher than the figure you gave, more tax and interest may fall due.
Jointly owned land and buildings are not valued on IHT405. They go on IHT404, ‘Jointly owned assets’. IHT404 says that where the joint assets include houses, land or buildings you also fill in IHT405 “to provide a full description of the land and property” — so the description sits on IHT405 and the value sits on IHT404.
Either way, the deceased's share is part of the estate for inheritance tax. That is true of a joint tenancy, where the share passes automatically to the surviving joint owner and never passes under the will, as much as of a tenancy in common, where the share passes under the will or intestacy. The spouse exemption may apply if the survivor is the spouse or civil partner.
On the discount for a share, HMRC's IHT400 notes give a starting point rather than a rule. Under English law you “may reduce the arithmetical share of the value of the whole of the property by 10%”; the notes stress this “is only to give us a starting point”. Under Scottish law the discount reflects the cost of raising an action for division and sale, so it is not a percentage — the notes suggest deducting £4,000 from the value of the whole property before working out the deceased's share.
There is no discount at all where the other joint owner was the deceased's spouse or civil partner. HMRC's notes are explicit: “you must not apply any discount” — include the straight arithmetical share.
IHT405 records the open market value of the property. Outstanding mortgages and secured loans are not netted off there — they are deducted separately at box 80 of the IHT400, ‘Mortgages and secured loans’. To obtain the correct figure:
Equity release schemes are common in older estates. A lifetime mortgage or home reversion plan will show as a liability against the property. Request the outstanding balance or the value of the reversion at the date of death from the provider — do not overlook this, as the amounts can be substantial.
If the estate includes a farm, agricultural land, or a business interest, you must still include the property at open market value on IHT405. APR or BPR is then claimed separately:
For deaths on or after 6 April 2026, HMRC's current IHT405 says relief at 100% on the combined value of qualifying agricultural and business property is limited to £2.5 million, with the excess qualifying for relief at 50%. That figure takes in gifts of qualifying property made on or after 30 October 2024 within seven years of the death. Unused allowance may be transferred from a late spouse or civil partner if a claim is made within four years of the survivor's death, or within six months of the personal representatives starting their role. See our guide on APR changes from April 2026 for full detail.
If HMRC opens an enquiry into a property valuation on IHT405, the case is referred to the Valuation Office Agency (VOA). The VOA will conduct their own assessment using comparable sales data and may physically inspect the property. Their revised figure takes precedence unless the executor formally challenges it — a process that can take months and may require specialist input from a RICS surveyor.
What the rules require is an open market value at the date of death, supported by evidence you can produce if HMRC asks. The IHT405 itself says that if you have a professional valuation you should enclose a copy with the completed form.
Related guides