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How to complete IHT405: valuing houses, land, and buildings for Inheritance Tax

Every property in the deceased's sole name needs to be valued and reported on IHT405.

That means obtaining a proper date-of-death valuation — not an online estimate, not the purchase price, and not what the property is currently on the market for.

This walkthrough explains what information IHT405 needs for each property, how to get the right type of valuation, when HMRC's District Valuer is likely to challenge the figure, and how to handle a property that was sold after death.

✓ Official source checked 2 September 2026 · GOV.UK last revised this form 21 April 2026IHT405 on GOV.UK
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United KingdomInformational, not legal or financial adviceOfficial source: GOV.UK
Official form · always current

This is the same official IHT405 file HM Revenue & Customs 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on GOV.UK — the link below fetches the current version live from GOV.UK the moment you click it, so it can never go out of date.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: April 2026 · confirmed on GOV.UK 2 September 2026

This walkthrough takes IHT405 field by field, in plain English. The form itself is short; the hard part is the number you put in it — HMRC wants the open market value at the exact date of death, and its District Valuer Service cross-checks every figure against real Land Registry sales.

The valuation HMRC checks every time
Using the asking price or a Zoopla/Rightmove 'estimate' as the IHT value.

HMRC requires the open market value at the date of death — the price a willing buyer would pay a willing seller in an arm's-length sale on that specific day.

For properties that sell within a year of death, HMRC's District Valuer compares the sale price against the IHT value and may open an enquiry where there is a significant gap.

Figures and thresholds here are illustrative; check the current gov.uk guidance and consider professional advice where the District Valuer challenges a value.
The form, in summary

The IHT405 form, in summary.

Valoren
IHT4054 pages28 fields guided
With Valoren30 minutes
for the form itself · with valuations already obtained
Without Valoren1–3 hours
per property · valuation can take weeks if a surveyor is needed
Deadline
6 monthsinterest starts;
filed with IHT400
Who Files
Executoror administrator
with IHT400
£
Fee
Freevaluation costs
are estate expenses
Filed with HMRC
Draws from your Estate File
the records this form is built from
PersonalProperty Folio·Legal Instruments·Digital Access Map·Financial Accounts·Asset Inventory·Income & Outgoings·Civil Dossier·Policy Index·Medical Abstract·Succession Plan·Digital Legacy Registry·Business Interests & Directorships·Funeral & Committal Wishes·Dependent Care & Handoff·Personal Record·RegistryMaster Registry·Renewal Register·People, Authority & Contacts·Designated Places·Kinship & Succession Map·SecureAccess Controls·Recovery Routes·Custody & Contingency·EventsDeath & Estate Activation·Incapacity & Medical Proxy·Absence & Continuity Cover·Access Loss & Identity Recovery·Legal Dispute & Evidence Protocol·Theft & Asset Compromise·Property Damage & Incident Response·Relocation & Address Update Protocol·Separation & Custody Documentation·Business Interruption & Continuity·PersonalProperty Folio·Legal Instruments·Digital Access Map·Financial Accounts·Asset Inventory·Income & Outgoings·Civil Dossier·Policy Index·Medical Abstract·Succession Plan·Digital Legacy Registry·Business Interests & Directorships·Funeral & Committal Wishes·Dependent Care & Handoff·Personal Record·RegistryMaster Registry·Renewal Register·People, Authority & Contacts·Designated Places·Kinship & Succession Map·SecureAccess Controls·Recovery Routes·Custody & Contingency·EventsDeath & Estate Activation·Incapacity & Medical Proxy·Absence & Continuity Cover·Access Loss & Identity Recovery·Legal Dispute & Evidence Protocol·Theft & Asset Compromise·Property Damage & Incident Response·Relocation & Address Update Protocol·Separation & Custody Documentation·Business Interruption & Continuity·
Legal basisStatute

IHT405 is the supplementary schedule used with IHT400 to report all freehold and leasehold property owned solely by the deceased at the date of death.

Jointly owned property goes on IHT404.

The key requirement is the open market value at the exact date of death — not the purchase price, not the current asking price, and not an average of recent sales.

HMRC's District Valuer Service (DVS) scrutinises property values and frequently challenges figures, particularly in high-value areas.

Agreeing a value with the DVS before submitting can save months of delay.

Section by section

The form, section by section.

Before you start, you’ll need:
  • Who Files — The executor or administrator, as part of the IHT400 account
  • 4 pages · 28 fields guided
  • Draws from your Estate File — Property Folio, Legal Instruments
Section 1

Getting the right valuation — what HMRC actually accepts

The valuation question is where most estates go wrong on IHT405. HMRC has specific requirements about what counts as a valid date-of-death property valuation.

The 'open market value' rule

IHTA 1984 s.160 defines the required value as the price the property 'might reasonably be expected to fetch if sold in the open market' at the date of death, assuming a willing buyer and seller, reasonable marketing time, and no artificial restrictions.

This means the value must reflect what was achievable on the specific date of death, in the actual market conditions that existed on that date.

Estate agents' valuations — when they work

For most residential properties, written valuations from two or three local estate agents (specifying the date-of-death value) are accepted by HMRC.

The valuations should be specifically dated to the date of death (not the date of the valuation report), and should reference comparable sales in the area.

Verbal valuations or online estimates are not accepted.

RICS 'Red Book' valuation — when it is needed

A formal RICS valuation (conducted under the RICS Valuation – Global Standards, the 'Red Book') is required for: commercial properties; rural or agricultural land; high-value residential properties (typically over £2 million, where the DVS is almost certain to challenge); unusual properties; and any property where the estate agents' valuations diverge significantly.

A Red Book valuation takes 2–4 weeks and costs £500–£2,000+ depending on the property.

The District Valuer — expect a challenge

HMRC's District Valuer Service (DVS) reviews property valuations on IHT400.

The DVS has access to Land Registry sale records and can compare the declared IHT value against actual sale prices for comparable properties.

For London and South East properties, the DVS challenges the declared value in a high proportion of cases, often arguing for 5–15% more.

Negotiation through a qualified surveyor is possible and often results in a compromise figure.

The valuation question is where most estates go wrong on IHT405. HMRC has specific requirements about what counts as a valid date-of-death property valuation.

HM Revenue & Customs (HMRC) · IHT405
Section 2

Completing IHT405 — what each property entry requires

A separate entry on IHT405 is needed for each property in the deceased's sole name. Have the Land Registry title register and a written valuation to hand before starting.

Property address and title number

The full address including postcode.

The title number (from the Land Registry register — order at gov.uk for £3).

If the property is unregistered (older properties may not be registered), leave the title number blank and note that it is unregistered.

The type of ownership: freehold, leasehold.

If leasehold, the remaining term of the lease (a lease with under 80 years remaining has a significantly diminished value).

How the property was owned

Sole ownership — enter the full value.

Joint ownership with another person — use IHT404 instead (jointly owned property does not go on IHT405).

Owned by a trust — use IHT418.

If the deceased had a right of occupation but did not own the property outright (e.g. they were a beneficiary of a trust that owned it), the position is complex — take professional advice.

Value at date of death

The open market value at the exact date of death.

If you have multiple estate agents' valuations, HMRC expects you to take the average, or the mid-point, or to explain how you arrived at the figure.

Do not simply use the lowest valuation to minimise IHT — HMRC can and will challenge this.

Mortgages and charges

Any mortgage, charge, or legal restriction secured against the property must be declared.

The amount outstanding on the mortgage at the date of death is deductible from the estate.

Request a redemption statement from the lender as at the date of death.

Note: interest-only mortgages will have a capital balance equal (or close) to the original loan amount.

Whether the property was the main residence

Tick the box if the property was the deceased's main residence — this is relevant to the Residence Nil Rate Band (IHT435 schedule).

If the property was tenanted or a buy-to-let, note this.

Tenanted property may qualify for a reduced value due to the sitting tenant's rights, particularly under older tenancy agreements (pre-1988 Rent Act tenancies can significantly reduce value).

A separate entry on IHT405 is needed for each property in the deceased's sole name. Have the Land Registry title register and a written valuation to hand before starting.

HM Revenue & Customs (HMRC) · IHT405
Section 3

Property sold after death — what to do

If the property was sold after the date of death but before the IHT400 is submitted, the sale price is powerful evidence of the date-of-death value — and HMRC will use it.

When the sale price is close to the IHT value

If the property sold within 12 months of death at a price close to (within 5–10% of) the IHT value you have declared, HMRC will generally accept the declared figure.

The sale is treated as evidence that the IHT value was reasonable.

When the sale price is significantly higher

If the property sold for significantly more than the declared IHT value (particularly within a few months of death), HMRC will argue the IHT value should be increased to the sale price.

The gap is hard to explain unless there was a genuine reason the property was worth less at death (major works carried out between death and sale; sale after a rising market; sale of additional items included in the sale price).

Loss relief — claiming back overpaid IHT

Conversely, if the property sold for LESS than the IHT value declared within 4 years of death, a loss relief claim can be made to reduce the IHT payable.

This commonly applies when a property market falls between the date of death and the eventual sale.

The claim is made by amending the IHT400.

If the property was sold after the date of death but before the IHT400 is submitted, the sale price is powerful evidence of the date-of-death value — and HMRC will use it.

HM Revenue & Customs (HMRC) · IHT405

Many people file IHT405 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

IHT405 questions, answered.

IHT405 is the HMRC schedule, filed with the IHT400, that reports every freehold and leasehold property the deceased owned in their sole name — the address, ownership type, date-of-death value, and any mortgage.

Jointly owned property goes on IHT404 instead, and trust property on IHT418.
The executor or administrator, as part of the IHT400 account.

The figures should come from a proper date-of-death valuation, not an online estimate.
It is filed with the IHT400, which must be delivered within 12 months of the end of the month in which the person died — though any Inheritance Tax owed is due earlier, by the end of the sixth month.

If a formal RICS valuation is still pending, you can submit a best estimate and amend the figure later.
There is no separate HMRC fee to file IHT405.

Any professional valuation costs — an estate agent's written valuation or a RICS surveyor's Red Book report — are treated as estate expenses.
The Land Registry title register for each property (the title number, ownership type, and any charges), a written date-of-death valuation, the deeds or lease showing whether it is freehold or leasehold and the remaining term, and a mortgage redemption statement as at the date of death.
Entering the asking price or an online 'estimate' instead of the open market value at the date of death.

HMRC's District Valuer has access to Land Registry sale records and frequently challenges figures, particularly in higher-value areas, so the value should be supported by written estate-agent valuations or a RICS report.

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Where this fits

IHT405 is one form. The file behind it is the rest.

Forms are easier when the records are ready.

For IHT405, that means the Land Registry title register for each property, the date-of-death valuations (estate agents' written figures or a RICS Red Book report), the deeds or lease showing freehold or leasehold and remaining term, and the mortgage redemption statement as at the date of death.

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)28 fieldsNo separate fee; professional valuation costs (estate agent or RICS surveyor) are estate expenses30 minutes for the form itself (with valuations already obtained) 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.

Next: IHT400
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