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.
Bank accounts are typically one of the simpler parts of an IHT400 submission — but there are several common errors that executors make, particularly around accrued interest, joint accounts, and the treatment of ISAs. This guide explains exactly what goes on IHT406 and how to obtain the correct figures.
IHT406 is the supplementary schedule to the IHT400 used to list the bank and building society accounts the deceased held in their sole name and that were in credit at the date of death. It covers:
Three sorts of account are specifically kept off this form. Accounts the deceased owned jointly go on IHT404, ‘Jointly owned assets’. Accounts that were also assets of a business go on IHT413. Accounts that were overdrawn at the date of death are not entered here as a negative — they are shown as liabilities at box 82 of the IHT400. Accounts held abroad go on IHT417, not here.
Each account is listed individually with the name of the bank or building society, the account or roll number, and the amount held including interest at the date of death. The box 1 total is copied to box 52 of the IHT400; the National Savings total from box 5 goes to its own box on the IHT400.
In Scotland, if you have filled in inventory form C1, the form tells you that you need only enter the total figure for all bank accounts in box 52 of the IHT400.
Accounts in the deceased’s sole name that were in credit at the date of death. Common account types include:
The key figure for each account is the balance at the date of death. This is not the same as the current balance, which will have changed due to direct debits, pensions being paid in, or interest accruing.
To obtain the correct figure:
Banks are generally required to provide this information to executors, but some will ask to see the death certificate and evidence of your appointment as executor (or a copy of the will naming you as executor) before releasing details.
Forgotten accounts: You can check for forgotten bank accounts using the My Lost Account service at mylostaccount.org.uk. This is a free service run by the banking industry that searches for dormant accounts across most major banks and building societies.
IHT406 is for sole accounts. The form says so at the top and again at box 1: “Give details of joint accounts on form IHT404, ‘Jointly owned assets’.” Putting a share of a joint account on IHT406 is one of the commonest ways an IHT400 comes back.
The share itself is also not automatically half. HMRC’s own instruction to its caseworkers (IHTM15042) is to apportion a joint account by contribution: “You should normally regard each account holder as beneficially entitled to the proportion of the account which is attributable to their contributions.” If the deceased paid in all the money, the whole balance goes into the estate even though the account was in two names — and if the deceased paid in none of it, none of it does. The fact that the survivor could have withdrawn the lot does not increase their share for tax.
Joint accounts with a spouse: Even though the surviving spouse takes the balance immediately on death by survivorship, the deceased’s share still has to be declared on IHT404. If the spouse exemption applies, that share is exempt — but it is reported first and exempted second.
Many people assume that ISAs are free of inheritance tax because of their tax-advantaged status. This is not correct. ISA status provides income tax and capital gains tax benefits during the holder's lifetime, but it does not reduce the value of the ISA for inheritance tax purposes.
The full value of all cash ISAs at the date of death must be declared on IHT406 at their face value.
Additional Permitted Subscription (APS): If the deceased's ISA is inherited by their surviving spouse or civil partner, the spouse may be entitled to an Additional Permitted Subscription — effectively allowing them to shelter the inherited ISA value within their own ISA wrapper. This is an income tax planning opportunity for the survivor; it does not affect the IHT calculation.
NS&I products are straightforward to value but have a few nuances:
NS&I takes bereavement claims online at nsandi.com (no account needed) or on a paper form; its published helpline is 08085 007 007, or +44 1772 329880 from abroad, and post goes to NS&I, Sunderland SR43 2SB. NS&I currently warns that its response time for a bereavement enquiry is eight weeks, and that it may ask for a grant of representation where the total NS&I savings are £5,000 or over.