Can you claim an Inheritance Tax refund?
Yes, in some situations. The most common is when a property from the estate sells for less than its value for Inheritance Tax. In 2025-26, HMRC agreed a record number of these property refunds.
The main ways an estate gets tax back
- Property sold at a loss within 4 years of death: claimed on form IHT38. This is what we specialise in.
- Quoted shares sold at a loss within 12 months of death: claimed on form IHT35.
- Simple overpayments, for example if a value or debt was wrong in the original account: corrected with HMRC, usually on a corrective account.
Who can't claim
- Estates where no Inheritance Tax was paid. Many estates pay none: everything left to a husband, wife or civil partner is exempt, and a widowed parent leaving the family home to children can often pass on up to £1 million tax-free.
- Property sold by a beneficiary after it had been passed to them.
- Claims made after the time limit.
Not sure if tax was paid?
The executors will know, or the solicitor or accountant who handled the estate. HMRC's free Inheritance Tax checker on GOV.UK also shows whether tax was likely to be due.
Doing it yourself or using a specialist
Executors can claim directly from HMRC for free. A specialist prepares the forms, handles HMRC's questions and tracks the claim to payment, usually for a share of the refund.
Want to know if the estate qualifies? Answer four quick questions and see an estimate in about a minute. No obligation, and nothing to pay unless HMRC refunds.
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How much Inheritance Tax can be refunded?
For property sold at a loss, typically 40% of the difference between the probate value and the sale price, but never more than the tax actually paid.
Does HMRC pay interest on Inheritance Tax refunds?
HMRC usually pays repayment interest on overpaid Inheritance Tax, from the date the tax was paid.