Inheritance tax is currently charged at 40 percent of the total assets you inherit above certain allowances
HMRC has issued an update on a significant change to the inheritance tax system. Families are required to pay the 40% tax on the total assets they inherit above certain allowances. You can pass on up to £325,000 in assets without paying the levy on this amount, plus an additional £175,000 when passing on a main residence to a direct descendant.
Any unused allowances can be transferred between spouses or civil partners. This effectively doubles the second partner’s allowances, and upon their death, they can pass on up to £1million in assets tax-free, provided they pass on their main home.
If you have an inheritance tax bill to settle, there are several HMRC forms to be aware of. One of these is the IHT400, where you provide details of the estate to calculate the tax that needs to be paid.
Once you have paid the amount, you can fill in an IHT30 form to apply for a clearance certificate, demonstrating that all the tax due on the estate has been paid. Labour MP James Naish posed a written question to Chancellor Rachel Reeves in Parliament, asking what the average time for an IHT30 certificate to be issued was, according to the latest figures.
He also enquired about the number of cases waiting for an IHT30 certificate to be issued, as of August 1, 2025. Treasury minister Dan Tomlinson provided a response.
He stated that HMRC does not maintain records on the average time for an IHT30 certificate to be issued, but there is a standard that the department processes 80 percent of certificates within 15 working days.
The minister also said: “HMRC have prioritised the processing of IHT400 forms to minimise any delays for customers applying for probate through HM Courts & Tribunals Service. Customers do not need an IHT30 certificate to distribute assets to beneficiaries.” Mr Tomlinson also discussed some of the plans in progress to improve the inheritance tax system.
He said: “HMRC have trained and deployed additional staff to work on inheritance tax, and are investing £52million to digitalise the inheritance tax service from 2027-28 to provide a modern, easy-to-use system, making returns and paying tax simpler and quicker.”