Executry service

Inheritance tax on a Scottish estate

Most estates pay no inheritance tax, but those that do must report and pay it before Confirmation. We work out whether tax is due, claim every allowance and relief available, complete the HMRC forms and arrange payment.

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Inheritance tax is charged at 40% on the part of an estate above the available allowances, and it has to be dealt with before the executor can obtain Confirmation. Getting the figures right, and claiming everything the estate is entitled to, can make a large difference to what the family receives.

What we do

  • Value the estate, including lifetime gifts made in the seven years before death
  • Check whether the estate is an excepted estate, which needs no full tax account
  • Claim the spouse, charity and residence allowances, including transfers of unused allowances from a spouse who died first
  • Claim business and agricultural property relief for farms and businesses
  • Complete the inheritance tax account and send it to HMRC with the Confirmation inventory
  • Arrange payment, including through HMRC's Direct Payment Scheme from the person's bank accounts
  • Deal with instalment options for tax on a house or land

Reducing the tax after a death

Within two years of the death, beneficiaries can redirect what they inherit by a deed of variation, for example to a surviving spouse, to charity, or to the next generation. Leaving at least 10% of the net estate to charity can also reduce the rate on the rest to 36%.

Pensions from April 2027

For deaths on or after 6 April 2027, most unused pension funds and pension death benefits will count towards the estate for inheritance tax, and executors will be responsible for reporting them. Death in service benefits and pensions left to a spouse or civil partner are excluded. We already help families review wills and pension nominations ahead of the change. Our guide on pensions and benefits after a death explains the change and what executors need to do now.

Scottish points to watch

A child's legal rights claim can create tax where a will leaves everything to a surviving spouse, and unmarried partners receive no spouse exemption. Our guide to inheritance tax in Scotland explains these and the other rules in more detail.

Guides

Read more before you decide

Frequently asked questions

Questions about inheritance tax

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Is inheritance tax different in Scotland?

No. The rates, allowances and exemptions are the same across the UK. What differs is the process, because Scottish executors report the estate on the Confirmation inventory and apply to the sheriff court.

Does inheritance tax have to be paid before Confirmation?

Usually at least the tax on the non-property assets must be paid before Confirmation is granted. Many banks can pay it directly to HMRC from the person's accounts, so the executor does not have to find the money personally.

What happens if inheritance tax is paid late?

HMRC charges interest from the end of the sixth month after the death. Penalties can also apply if the account is late or incorrect, which is why it is worth getting advice early.

Can a deed of variation reduce inheritance tax?

Often, yes. Redirecting an inheritance to a spouse, civil partner or charity within two years of the death can reduce the tax, provided the variation includes the right statement and meets HMRC's conditions.

Talk to us today

Talk to us about inheritance tax

Call us on 0141 471 9166 and tell us a little about the estate. One of our executry solicitors will talk you through the next steps. Your first appointment is free and there is no obligation.

If you can, have the death certificate, the will and any recent bank or pension statements to hand. If you do not have them yet, that is fine. Finding them is part of what we do. Our guides explain what a husband, wife or civil partner inherits and what happens to a joint bank account.

  • Phone 0141 471 9166
  • Office 34 Woodlands Road, Glasgow G3 6UR
  • Hours Monday and Friday 9am to 5pm, Tuesday to Thursday 8am to 6pm

The quickest way to reach us

0141 471 9166

Call to book your free first appointment, at one of our offices or by phone.

Please note that legal aid is not available for this service.

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