How to apply for the IHT30 clearance certificate, when clearance is needed, income tax and CGT during administration, preparing final estate accounts, distributing the residue, and formally closing the estate.
This guide is part of ProbateHelp's Probate Process guide cluster. Estimated reading time: 16 min.
This guide explains how executors close the tax side of an estate, including when HMRC clearance may be relevant, how final inheritance tax, income tax or capital gains tax issues can affect distributions, and why estate accounts should be kept before the estate is closed.
It is aimed at executors who have reached the post-grant stage and need to decide what evidence to keep, when to wait before distributing the residue, and how to record the final tax position for beneficiaries.
Also searched as: clearance closing estate; closing estate; h m r c clearance closing estate.
IHT30 is not a universal pre-distribution requirement. Consider it where a full IHT account was delivered and the values, amendments and tax are genuinely final. For most current excepted estates, the statutory discharge period is 60 days after the first full grant, subject to HMRC enquiries and statutory exceptions; 35 days applies to deaths before 1 January 2022.
IHT30 is HMRC's current application for an Inheritance Tax clearance certificate. If older correspondence uses a different form or certificate reference, check what was actually issued rather than assuming it has the same scope as an IHT30 clearance certificate.
HMRC does not publish a guaranteed public turnaround time on the GOV.UK IHT30 page. In practice, executors and solicitors can wait weeks or months, especially where HMRC has queries. Submit the IHT30 once the IHT position is settled, keep evidence of submission, and chase HMRC if the delay starts to hold up final distribution.
Do not make a final distribution unless administration-period Income Tax and Capital Gains Tax have been dealt with or a properly reasoned reserve covers the remaining exposure. An interim distribution may be possible in a suitable estate, but the personal representatives remain responsible if the retained funds are inadequate.
Beneficiaries are not legally required to approve estate accounts. If a beneficiary refuses to engage, document your attempts to contact them and proceed carefully. A beneficiary who later disputes the accounts will need to bring a formal challenge and show why the accounts are wrong.
GOV.UK says HMRC can ask to see Inheritance Tax records up to 20 years after the tax is paid. Other tax and claim periods vary with the facts, so there is no single safe retention period for every estate document. Keep the core estate file securely and take advice before destroying records where tax, trusts, minors, missing beneficiaries or a dispute may remain relevant.
If a significant asset or liability comes to light after distribution, you may need to reopen the estate. For assets, collect them in and distribute them to the beneficiaries. For debts, you may need to recover funds from beneficiaries. This is why a retention fund and clear records matter.