IHT404: jointly owned assets, who needs it, and how to fill it in
IHT404 covers every asset the deceased owned with someone else — bank accounts in joint names, jointly owned property, jointly held investments.
Even if those assets pass straight to the surviving owner by survivorship, they still need to be reported here: HMRC includes the deceased's share in the IHT calculation.
This walkthrough explains the joint tenancy / tenancy in common distinction, how to value each type of asset, and what a 'restricted value' discount is.
✓ Official source checked 2 September 2026 · GOV.UK last revised this form 13 May 2026IHT404 on GOV.UK ↗
United Kingdom·Informational, not legal or financial advice·Official source: GOV.UK
✓Official form · always current
This is the same official IHT404 file HMRC publishes on GOV.UK — the link below fetches the current version live from GOV.UK the moment you click it, so it can never go out of date.
Current version: May 2026 · confirmed on GOV.UK 2 September 2026
This walkthrough takes IHT404 field by field, in plain English. Most of the form is administrative; the hard part is one legal question for each asset — was it held as joint tenants or as tenants in common — because that decides both how the share passes and how its value is reported.
The distinction that changes who inherits
Confusing joint tenancy with tenancy in common for property.
If a property was owned as tenants in common, the deceased's share (say 50%) passes through the estate, not to the surviving co-owner — the survivor does NOT automatically inherit it, regardless of their relationship.
Many families assume a jointly owned property always passes to the survivor; that is only true for a joint tenancy, and only where the joint tenancy was never severed.
Order the title register from HM Land Registry and check the Proprietorship Register: a Form A restriction means tenants in common.
The form, in summary
The IHT404 form, in summary.
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IHT404·4 pages·22 fields guided
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Jointly owned assets must be reported on IHT404 when the deceased held property with another person.
The tax treatment depends critically on how the asset was held: as a joint tenant (right of survivorship applies — the surviving owner(s) take the whole asset automatically on death, but the deceased's share is still valued for IHT) or as tenants in common (the deceased's specified share forms part of the estate and passes under the will or intestacy rules).
Both types require a value to be entered on IHT404 — the difference is what happens to the asset, not whether it is reported.
·Who Files — The executor or administrator, as part of the IHT400 account
·4 pages · 22 fields guided
·Draws from your Estate File — Financial Accounts, Property Folio, Legal Instruments
Section01
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Section 1
Joint tenancy vs tenancy in common — the distinction that controls everything
Both types of joint ownership require entries on IHT404.
But they have very different legal and tax consequences. Getting this wrong can result in an incorrect estate, a probate application that cannot proceed, or family disputes about who owns the property.
01
Joint tenancy — survivorship applies
Joint tenants own the whole asset together (they cannot identify 'their share').
When one dies, the surviving joint tenant(s) automatically own the whole asset.
The deceased's share does not pass under the will or intestacy.
However, the market value of the deceased's notional share (usually 50% for two joint tenants) is still included in the estate for IHT purposes.
HMRC includes it; it just does not need to go through probate.
02
Tenancy in common — estate asset
Tenants in common each own a defined share (equal or unequal).
When one dies, their share passes under the will or intestacy — it does NOT pass to the surviving co-owner automatically.
This means probate or administration is required to deal with the share.
The full value of the deceased's share (whatever percentage they owned) is an estate asset and must be reported on IHT404 and included in IHT400.
03
How to tell which applies to a property
Order the title register from HM Land Registry (£3 at gov.uk/search-property-information-land-registry).
If the Proprietorship Register shows a 'Form A restriction', the property is held as tenants in common.
No restriction = likely joint tenancy.
For bank accounts, check the account mandate: most joint accounts default to joint tenancy (both parties can operate the account and the survivor takes all), but some accounts have been set up as tenants in common with a specific agreement.
04
Severed joint tenancies
A joint tenancy can be converted into a tenancy in common by 'severing' it — this is done by serving a written notice on the other owner(s).
Once severed, the right of survivorship is gone and each owner has an identified share.
Check whether either party ever served a notice of severance, particularly following a divorce or separation.
Both types of joint ownership require entries on IHT404.
HM Revenue & Customs (HMRC) · IHT404❦
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Section 2
Jointly owned bank and savings accounts
Section A of IHT404 covers joint bank accounts, savings accounts, building society accounts, cash ISAs, premium bonds in joint names, and similar cash holdings.
01
What to enter
For each joint account: name of the bank or building society; account number and sort code (or building society roll number); type of account (current, savings, ISA, premium bonds); balance at the date of death.
Contact the bank's bereavement team to request an official date-of-death balance — many banks provide this in writing within a few days.
02
How much of the balance counts
For a standard two-person joint account, the deceased's share is 50% of the balance.
However, if the funds in the account came entirely from one person (for example, a joint account set up between a parent and child for convenience, where all the money was the parent's), HMRC may treat the full balance as the deceased's estate — not 50%.
The default is 50% unless there is clear evidence of a different beneficial ownership.
03
Accounts that pass without probate
Most joint bank accounts pass to the surviving account holder automatically, without probate.
The survivor notifies the bank of the death and the account is transferred into their sole name.
But for IHT purposes, the deceased's share of the balance at death is still included in the estate.
Section A of IHT404 covers joint bank accounts, savings accounts, building society accounts, cash ISAs, premium bonds in joint names, and similar cash holdings.
HM Revenue & Customs (HMRC) · IHT404❦
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Section 3
Jointly owned land and property
Section B of IHT404 covers all jointly owned land, houses, and buildings — the family home, investment properties, and any other real estate held in joint names.
01
Valuation
The open market value of the whole property at the date of death is required.
For a property that was the main residence, estate agents' written valuations (typically three comparable market appraisals averaged) are accepted by HMRC.
For more complex or high-value properties, a RICS (Royal Institution of Chartered Surveyors) valuation is strongly recommended.
HMRC's District Valuer Service (DVS) may independently review property valuations and often argues for higher figures.
02
The deceased's share
For a joint tenancy: 50% of the property value (for two equal joint tenants).
For a tenancy in common: the percentage the deceased actually owned (which may not be 50% — check the title deeds or any declaration of trust).
03
Restricted value discount for property shared with a non-beneficiary
If the property passes to someone other than the surviving co-owner — for example, the deceased leaves their share to their children but the surviving spouse continues to live there — HMRC allows a discount of typically 10–15% on the deceased's share to reflect that it cannot be sold immediately without the co-owner's cooperation.
This discount is often contested by HMRC so professional valuation advice is advisable before claiming it.
04
The related property rules
HMRC's related property rules can increase the value of a jointly owned asset above its proportionate share.
For example, if the deceased's 50% share of a house would be worth significantly less on the open market than a 50% share of the whole property value, HMRC may substitute the related property value.
This most commonly affects minority shares in property.
Section B of IHT404 covers all jointly owned land, houses, and buildings — the family home, investment properties, and any other real estate held in joint names.
HM Revenue & Customs (HMRC) · IHT404❦
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§44
Section 4
Jointly owned stocks, shares, and other investments
Section C of IHT404 covers jointly owned listed shares, unit trusts, OEICs, and other investments held in joint names. Section D covers any other jointly owned assets not falling into the above categories.
01
Listed shares and unit trusts in joint names
Use the 'quarter up' rule for listed shares: take the lower market price on the date of death, and add one quarter of the difference between the lower and higher price.
For example, if a share was quoted at 200p–212p, the IHT value is 200 + (12 × 0.25) = 203p per share.
The deceased's proportionate share of jointly held investments is valued in the same way.
Contact the registrar or share dealing account to confirm the number of shares and joint ownership.
02
ISAs in joint names
ISAs cannot legally be held in joint names — they are individual accounts.
If you find a reference to a 'joint ISA', it is either a standard ISA in one person's sole name, or a current account-linked arrangement.
Report the full ISA balance (in the deceased's sole name) on IHT406 (bank accounts), not IHT404.
03
Business assets held jointly
Jointly owned business assets (partnership shares, jointly owned business premises) are reported on IHT404 but may also attract Business Property Relief (BPR) or Agricultural Property Relief (APR).
Report the full value on IHT404 and then claim the relief on the appropriate supplementary schedule (IHT413 for business, IHT414 for agricultural).
Section C of IHT404 covers jointly owned listed shares, unit trusts, OEICs, and other investments held in joint names. Section D covers any other jointly owned assets not falling into the above categories.
HM Revenue & Customs (HMRC) · IHT404❦
Many people file IHT404 themselves — that is what this walkthrough is for. If the estate behind it has stopped being simple — inheritance tax to pay, a trust, foreign assets, a dispute — Signum, Valoren’s own specialist desk, can take it on, and we say so plainly: it starts with a free intake, and if you do not need us, we will tell you. Prefer an independent adviser? STEP and the Chartered Institute of Taxation both keep public member directories, and neither pays Valoren a referral fee.
FAQ
IHT404 questions, answered.
IHT404 is the HMRC schedule, filed with the IHT400, that reports every asset the deceased owned jointly with someone else — joint bank and savings accounts, jointly owned property and land, and jointly held investments.
It captures the value of the deceased's share so HMRC can include it in the estate.
The executor or administrator of the estate, as a supplementary schedule to the IHT400 account.
It is filed with the IHT400, which must be delivered within 12 months of the end of the month in which the person died.
Any Inheritance Tax owed is due earlier — by the end of the sixth month, with interest running after that — so it helps to start gathering joint-account balances and valuations early.
No. There is no separate fee — IHT404 is a supplementary schedule filed alongside the IHT400.
Any professional valuation costs (for example a surveyor for a jointly owned property) are met as estate expenses.
For joint accounts, a date-of-death balance in writing from each bank or building society's bereavement team.
For jointly owned property, the title register from HM Land Registry (to check for a Form A restriction) and an open-market valuation.
And any declaration of trust or notice of severance that records the ownership shares.
Assuming a jointly owned property always passes to the surviving co-owner.
That is only true for a joint tenancy.
If it was held as tenants in common, the deceased's share passes under the will or intestacy and is dealt with through the estate — regardless of the co-owners' relationship.
Checking the title register settles it: a Form A restriction means tenants in common.
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Where this fits
IHT404 is one form. The file behind it is the rest.
Forms are easier when the records are ready.
For IHT404, that means each institution's date-of-death balance for joint accounts, the property's title register from HM Land Registry (to check for a Form A restriction), an open-market valuation of any jointly owned property, and any declaration of trust or notice of severance that fixes the ownership shares.
When you're ready — not before — our £179 Executor's First Hour walks you through registering the death, notifying banks and pensions, and getting probate started, in the right order. The free checklist above covers the essentials; this is for when you'd rather have a hand to hold. Executor's First Hour — £179 →
HM Revenue & Customs (HMRC)·22 fields·No separate fee — supplementary schedule filed with IHT400·20 minutes with Valoren
The return this attaches to
This is one schedule. It attaches to the IHT400 — the main Inheritance Tax account — which is where every schedule you complete comes together.
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