Last updated: 14 October 2026
Can you reclaim overpaid inheritance tax?
Yes, in several situations. If an estate’s shares were sold for less than their probate value within 12 months of death, or land and buildings within 4 years, executors can claim “loss on sale” relief and get IHT back. Refunds are also available if assets were overvalued, debts were missed, the estate was varied to pass to a spouse or charity, or extra reliefs are later found to apply. Most claims must be made within 4 years.
Ways to reclaim IHT
| Reason | How to claim | Time limit |
| Quoted shares sold at a loss within 12 months of death | Form IHT35 | Within 4 years of the end of the 12-month period |
| Land or buildings sold at a loss within 4 years of death | Form IHT38 | Within 4 years of the end of the 4-year period, broadly |
| Values or debts wrong on the IHT400 | Corrective account (form C4) | Within 4 years of the date of payment |
| Deed of variation leaving more to a spouse or charity | Send the deed to HMRC | The variation must be made within 2 years of death |
| Unused nil-rate band of an earlier spouse not claimed | Claim on the IHT account | Normally within 2 years of death |
Loss on sale of shares
If quoted shares, unit trusts or OEICs are sold within 12 months of death for less than their value at death, the lower total sale value can be substituted. The relief applies to all such sales in the period, so gains on other shares reduce it.
Loss on sale of property
If land or buildings are sold within 4 years of death for less than probate value, the sale price can replace the probate value. The loss must be more than £1,000 or 5% of the value, whichever is lower. All sales in the period are taken into account.
Example
A house was valued at £600,000 for probate. The executors sell it 18 months later for £540,000. They claim on form IHT38, and the estate’s value falls by £60,000, giving a refund of £24,000 at 40%.
Overvalued assets
If an asset was valued too high because an estimate was used, file a corrective account with the correct valuation. HMRC repays the difference plus repayment interest.
Deeds of variation
Beneficiaries can redirect their inheritance within 2 years of death, for example to a spouse, a charity or the next generation. If the variation increases exempt gifts, IHT may be refunded.
Repayment interest
HMRC pays interest on IHT repayments from the date the tax was paid.
Reclaiming IHT on assets that fell in value
Keep the sale paperwork and valuations, and submit claims within the time limits. Act within the deadline.
Frequently asked questions
Who makes the claim?
The executors or administrators who paid the IHT.
Can beneficiaries claim if executors won’t?
Executors make the claim, but beneficiaries can ask them to.
Does a fall in value after the 4 years count?
No.
What if the house sold for more?
If you claim relief, gains on other property sales in the period reduce it. Otherwise, the probate value stands.
Related: IHT on a deceased person’s gift and stamp duty on inherited property.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with inheritance tax reclaims. See our inheritance tax advice service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
