IHT419 is the schedule to form IHT400 that explains debts the deceased owed which you want to deduct from the estate, other than a mortgage: loans and overdrafts, money someone spent on their behalf, guaranteed debts and liabilities linked to life policies. For deaths on or after 17 July 2013, a debt is normally deductible only if it is repaid out of the estate, and a debt owed to someone who received a gift from the deceased is generally not allowed.
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What is form IHT419?
Form IHT419, titled “Debts owed by the deceased”, is a four page schedule used with the IHT400 inheritance tax account. The current version is dated January 2018. GOV.UK describes it as the form to use where you include a deduction on the IHT400 for loans, overdrafts or money spent on behalf of the deceased that is to be repaid out of the estate. The amounts themselves go in box 80 or box 82 of the IHT400; IHT419 holds the explanation. For the main account, see our guide to completing the IHT400, and for the general rules on liabilities, see deducting debts from an estate.
Why are you being asked to complete IHT419?
Box 46 of the IHT400 asks whether you are deducting money the deceased borrowed from close friends or relatives, other loans, or guaranteed debts. If you answer yes, you fill in IHT419. A mortgage secured on a property does not need IHT419: the IHT400 notes say it goes in box 80. Funeral expenses go in box 81, not on this schedule: see funeral expenses and IHT.
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What does IHT419 ask for?
- Question 1, money spent on the deceased’s behalf: who paid, their relationship, what it was spent on, why the deceased’s own money was not used, why it was not repaid, and the amount.
- Question 2, outstanding loans, including from close friends and relatives: the lender, the loan date and purpose, whether it was secured, the original amount and the amount owed at death, with copies of written evidence.
- Question 3, life assurance and investment bond liabilities: the insurer, the amount owed and the sum assured shown in the estate, with the policy and any trust or loan documents.
- Question 4, guaranteed debts: whose debt was guaranteed, whether the deceased was called on to pay, and the amount. If they were not called on, you must explain why the debt should still be deducted.
- Question 5, gifts and loans from the same person: details of gifts made after 18 March 1986 to someone who later lent money to the deceased, and of any repayments.
- Question 6, other information, including why an exception applies.
When will HMRC refuse a deduction for a debt?
For deaths on or after 17 July 2013, IHT419 says a liability may not be deducted if the money was borrowed to acquire, maintain or enhance excluded property, or if the debt is not repaid out of the estate. Section 175A of the Inheritance Tax Act 1984 sets the repayment rule: the liability must be discharged after death out of the estate, in money or money’s worth.
There are exceptions. An unpaid debt can still be deducted where there is a real commercial reason for not paying it, such as an arm’s length lender who would not demand payment, and getting a tax advantage is not a main purpose of leaving it unpaid. A debt linked to excluded property can be deducted if that property has been sold and the proceeds are now taxable, or the property has itself become taxable. Explain any exception at question 6.
A separate rule applies to business and farm assets. If a deductible liability was incurred on or after 6 April 2013 to acquire, enhance or maintain property qualifying for agricultural, business or woodlands relief, it is deducted from that property before the relief is worked out: see claiming business relief on IHT413.
Why do loans from family face extra checks?
Section 103 of the Finance Act 1986 deals with a gift followed by a loan back. Where a debt was incurred on or after 18 March 1986 and the money lent came from property the deceased had given away, the deduction is cut back in proportion. IHT419 puts it simply: debts owed to someone who also received a gift from the deceased are generally not allowed. Repayments the deceased made on such a debt before death are treated as potentially exempt transfers. If the gift is already listed on the gifts schedule, IHT403, you can just identify it at question 5.
The same section stops a deduction for a debt linked to a life policy issued on or after 1 July 1986 unless the whole sum assured forms part of the estate, which is why question 3 asks for the sum assured.
| Type of debt | Where it goes | Point to watch |
|---|---|---|
| Mortgage on a property | IHT400 box 80 | No IHT419 needed |
| Loan or overdraft | IHT419 question 2 | Written evidence of the loan |
| Money spent on the deceased’s behalf | IHT419 question 1 | Why it was not repaid in life |
| Life policy or bond liability | IHT419 question 3 | Sum assured shown in the estate |
| Guaranteed debt | IHT419 question 4 | Whether the deceased was called on |
| Loan from someone who received a gift | IHT419 question 5 | Generally not deductible |
| Debt not repaid from the estate | IHT419 question 6 | Only allowed for a real commercial reason |
Illustration only. Joan dies in 2026. Her son paid £6,000 of her household bills in her last year, and her executors will repay him from the estate, so the £6,000 goes at question 1. She owed £2,400 on a bank overdraft, which goes at question 2. In 2019 Joan gave her daughter £10,000, and in 2022 the daughter lent Joan £10,000 from that money. That loan goes at question 5, and because the money came from Joan’s own gift, it is generally not deductible.
What is the deadline for IHT419?
IHT419 has no deadline of its own; it goes in with the IHT400. The IHT400 notes say the account must reach HMRC within 12 months of the date of death, and that a late account can lead to a penalty of up to £200, with a further penalty of up to £3,000 if the delay reaches 2 years. Inheritance tax is due by the end of the sixth month after the death, and HMRC charges interest from the first day of the seventh month. See penalties for late IHT accounts.
What mistakes are common on IHT419?
- Listing a mortgage on IHT419 instead of in box 80.
- Deducting a family loan that the lender has agreed to write off, so it will not be repaid from the estate.
- Giving no written evidence for an informal loan from a relative.
- Missing the gift and loan back rule where the lender had earlier received money from the deceased.
- Deducting a guaranteed debt in full when the deceased was never called on to pay, without explaining why.
What happens after HMRC receives IHT419?
HMRC reviews the deductions with the rest of the IHT400. It may ask for more detail, such as the written evidence of each loan that question 2 asks you to send, so keep copies of everything you rely on. If a deduction is refused, the taxable estate rises and more tax may be due: see HMRC checks on IHT accounts.
Frequently asked questions
Do I need IHT419 for a mortgage?
No. The IHT400 notes say a mortgage secured against a property goes in box 80 of the IHT400, without IHT419.
What if a relative says they do not want the loan repaid?
Then the debt is not discharged out of the estate, and under section 175A it cannot be deducted unless there is a real commercial reason for leaving it unpaid and no main purpose of gaining a tax advantage.
Are funeral costs claimed on IHT419?
No. Funeral expenses go in box 81 of the IHT400.
Can an overdraft be deducted?
Yes. Loans and overdrafts are among the debts IHT419 is designed for, as long as they are repaid out of the estate.
If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.
Sources
- GOV.UK: Inheritance tax debts owed by the deceased iht419
- assets.publishing.service.gov.uk: IHT419 012018 online v2
- legislation.gov.uk: Act 1984 c. 51, section 175A
- legislation.gov.uk: Act 1986 c. 41, section 103
- assets.publishing.service.gov.uk: IHT400 2022 Notes 04 26final
- GOV.UK: Paying inheritance tax
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 November 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.