Where do you download form IHT423?

Form IHT423 is on GOV.UK at the publication page "Direct Payment Schemes for Inheritance Tax (IHT423)", last updated 24 February 2025. Download the current version each time, since HMRC replaces these forms without changing the form code.

Can you submit form IHT423 online?

No. Form IHT423 goes to the bank, building society or investment provider holding the account, not to HMRC, so there is no HMRC online submission route for it. Each institution sets its own process for receiving the form, so ask them how they want it sent.

Can you use form IHT423 before probate is granted?

Yes. GOV.UK confirms you can start the Direct Payment Scheme before you have probate, or confirmation in Scotland. That is the reason the scheme exists. You still need to be registered as the personal representative with the institution, and you still need the Inheritance Tax reference number first.

Do you need a solicitor to complete form IHT423?

No. Personal representatives can complete form IHT423 themselves, and many do. A solicitor or tax adviser is worth considering for a large estate or several institutions. What matters most is that the Inheritance Tax reference is right and the amounts reconcile.

Form IHT423: paying Inheritance Tax from the deceased's bank account

This page covers what form IHT423 does, who needs it, the four steps in the scheme, and how it fits with the other inheritance tax forms.

By Edward MartinLast updated: 6 August 20264 min read

In brief

Form IHT423 is the Direct Payment Scheme form, and it supports the Inheritance Tax account, form IHT400.
Personal representatives who need the deceased's own money to pay Inheritance Tax before probate may need form IHT423.
You send form IHT423 to the bank, not to HMRC, and you complete one form for each account.
You need an Inheritance Tax payment reference number first, applied for using form IHT422.
Inheritance Tax must be paid by the end of the sixth month after the death, and HMRC charges interest after that (GOV.UK).

Form IHT423 asks a bank, building society or investment provider to pay Inheritance Tax owed directly to HMRC from the deceased's account. It is part of the Direct Payment Scheme. You send one form per account to the institution itself, not to HMRC, and you can start before probate is granted.

What is form IHT423?

The official title of form IHT423 is "Direct Payment Schemes for Inheritance Tax (IHT423)". It was last updated on 24 February 2025 (GOV.UK).

It solves a specific problem. Inheritance Tax is due before probate is granted, but a bank will not normally release the deceased's money until it sees the grant. Form IHT423 breaks that deadlock by authorising the institution to send money straight to HMRC. Nothing is released to you personally.

Form IHT423 supports the Inheritance Tax account, form IHT400. Unlike the other schedules, it does not go to HMRC. It goes to the bank.

Who needs to complete form IHT423?

You need form IHT423 if there is Inheritance Tax to pay, you are the personal representative, and you want to pay some or all of it from the deceased's own accounts before probate is granted. You do not need it if the estate is excepted with no tax to pay, or if the tax is paid from another source such as a beneficiary or a loan.

One limit matters: the account has to be held with a participating provider, and in the deceased's sole name. GOV.UK is explicit that you cannot use a jointly held account for this method of payment. Banks, building societies, National Savings and Investments, investment brokers and wealth management accounts can take part, but some providers are not in the scheme (GOV.UK).

How does the Direct Payment Scheme work, step by step?

GOV.UK sets out four steps for paying Inheritance Tax from the deceased's bank account.

Step one: become the personal representative with the bank, building society or investment provider.
Step two: get an Inheritance Tax payment reference number, using form IHT422, last updated on 5 June 2026 (GOV.UK).
Step three: complete form IHT423 and send it to the institution, one form per account.
Step four: send form IHT400 and the supporting documents to HMRC.

You can start before you have probate, or confirmation in Scotland (GOV.UK). If you are still working out which accounts existed, what happens to a bank account when someone dies covers what freezes and when.

What information does form IHT423 ask for?

Form IHT423 comes in two versions on the same form: one for bank, building society and NS&I accounts, and one for brokers and investment management accounts. The bank version asks for the account name, sort code, account number or roll number, and the amount to transfer. The broker version asks for the account name, which assets to sell if only part of the holding is used, and the amount to transfer. Both versions carry the deceased's details and the Inheritance Tax reference, and need signing by everyone applying for the grant.

Because one form covers one account, the amounts across several forms must add up to what you intend to pay. The same accounts also appear on form IHT406, but the two serve different purposes: form IHT406 reports value to HMRC, form IHT423 moves money.

When do you need to send form IHT423?

Inheritance Tax must be paid by the end of the sixth month after the death. GOV.UK's example: a January death means paying by 31 July, with interest charged if you are late. Work backwards from that date: you need the Inheritance Tax reference before sending form IHT423, and the institution needs time to act on it. GOV.UK does not publish how long institutions take, so starting in month five is a risk rather than a plan.

Form IHT400 must be sent within 12 months of the death, and before applying for probate (GOV.UK). HMRC then sends a unique code you need to apply. See how to apply for probate for what follows.

Sorting out the accounts in the first place

The scheme only helps once you know which accounts the person held and have registered as the personal representative with each provider, usually the slow part. Legacy Trail finds the accounts and services the person held and notifies them centrally.

Frequently asked questions

Form IHT423 is on GOV.UK at the publication page "Direct Payment Schemes for Inheritance Tax (IHT423)", last updated 24 February 2025. Download the current version each time, since HMRC replaces these forms without changing the form code.
No. Form IHT423 goes to the bank, building society or investment provider holding the account, not to HMRC, so there is no HMRC online submission route for it. Each institution sets its own process for receiving the form, so ask them how they want it sent.
No. GOV.UK states that banks, building societies, NS&I, investment brokers and wealth management accounts can take part, but some providers are not in the scheme. Check with each institution first; if one is out, you will need another way to fund the tax.
Yes. GOV.UK confirms you can start the Direct Payment Scheme before you have probate, or confirmation in Scotland. That is the reason the scheme exists. You still need to be registered as the personal representative with the institution, and you still need the Inheritance Tax reference number first.
No. Personal representatives can complete form IHT423 themselves, and many do. A solicitor or tax adviser is worth considering for a large estate or several institutions. What matters most is that the Inheritance Tax reference is right and the amounts reconcile.

This article is for general information only and does not constitute legal advice. Individual circumstances vary. If you are dealing with an estate, consider taking advice from a solicitor who specialises in probate. For other guidance specific to your circumstances, speak to a funeral director, Citizens Advice, or a regulated financial adviser.