IHT406 Form: Bank and Building Society Accounts — Complete Guide 2026

What is IHT406?

IHT406 is the supplementary schedule to the IHT400 used to list all bank and building society accounts held by the deceased. It covers:

• Current accounts and instant-access savings accounts
• Fixed-rate bonds and term deposits
• Cash ISAs
• Notice accounts
• National Savings & Investments products (Premium Bonds, Income Bonds, etc.)
• Foreign bank accounts held by the deceased (also reported on IHT417 in some cases)

Each account is listed individually with the institution name, account number (last four digits is sufficient), account type, balance at the date of death, and any accrued interest not yet credited.

What accounts go on IHT406?

All accounts in the deceased's sole name, and their share of any joint accounts, should be listed. Common account types include:

• Current accounts: Include any overdrawn balance (which is a liability, deductible on IHT419)
• Savings accounts: All instant-access and notice savings accounts
• Fixed-rate bonds: Include accrued interest even if early redemption charges would apply — the value is the balance plus accrued interest, not the early redemption proceeds
• Cash ISAs: Full value declared; no IHT discount for ISA status
• NS&I products: Premium Bonds, Savings Certificates, Income Bonds — see below
• Foreign bank accounts: Include on IHT406 (and potentially IHT417); convert to sterling using the exchange rate at the date of death

How to get date-of-death balances

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:

1. Write to or call each bank, identifying yourself as the executor and providing the death certificate
2. Request a "date of death balance" statement for each account — most banks have a specific bereavement team and process for this
3. Ask the bank to also provide the accrued interest to date of death — this is interest that has been earned but not yet credited to the account
4. If there were multiple accounts at the same institution, request figures for all of them at the same time

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.

Joint accounts

For joint accounts, include only the deceased's share. In most cases this is 50% — for example, a joint account with a spouse where both parties contributed equally.

However, the split may differ where contributions were unequal. HMRC accepts the legal presumption that joint account holders own equal shares unless there is evidence to the contrary.

Joint accounts with a spouse: Even though the surviving spouse typically inherits the full joint account immediately on death, the deceased's share must still be declared on IHT406. If the estate qualifies for the spouse exemption, that share will be exempt from IHT — but it must still be reported.

ISAs on death

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.

National Savings & Investments

NS&I products are straightforward to value but have a few nuances:

• Premium Bonds: The value at the date of death is the total face value of all bonds held (£1 per bond). After death, bonds remain eligible for prize draws for up to 12 months — any prizes won after death belong to the estate but are not part of the IHT valuation.
• Savings Certificates: The value is the original investment plus any accrued index-linking or interest up to the date of death. NS&I will provide this figure on request.
• Income Bonds and Investment Accounts: Declare the balance at the date of death including accrued interest.

Common mistakes

• Forgetting accrued interest: This is frequently missed, particularly on fixed-rate bonds where interest is credited annually. Accrued interest is a genuine asset of the estate and must be declared.
• Wrong joint account split: Including 100% of a joint account rather than 50%, or including 0% because it passes automatically to the survivor (it still needs to be declared even if exempt).
• Missing dormant accounts: Accounts opened decades ago may still hold balances. Use My Lost Account to check.
• Treating ISAs as exempt: Cash ISAs must be declared at full value regardless of their tax-advantaged status during life.
• Using the current balance rather than the date-of-death balance: Direct debits, standing orders, and pension credits may have altered the balance after death.

Related guides

• IHT400 form: complete guide to the inheritance tax return
• IHT405: houses, land and buildings
• IHT419: debts owed by the estate