IHT404 is the schedule where you report the share of any asset the person who died owned jointly with someone else, such as a house, a joint bank account or shared contents. It records each asset's whole value, the deceased's share, any debts and reliefs, and which assets passed automatically to the surviving owner by survivorship.
This guide follows the August 2026 Schedule IHT404 (HMRC 08/26) and the HMRC IHT400 Notes, as of October 2026.
How the form is split
| Box | Assets | Net total goes to |
|---|---|---|
| Box 1 to 5 | Jointly owned houses, buildings and land, and shares that gave control of a company or qualify for business relief | IHT400, box 49 |
| Box 6 to 10 | Other joint assets, for example bank accounts and household and personal goods | IHT400, box 50 |
| Box 11 to 13 | Assets that passed by survivorship, and the liabilities deducted from them | Used for the probate and reduced rate figures |
Joint assets outside the UK go on IHT417, foreign assets, and assets owned jointly by a business or partnership go on IHT413. If the joint assets include houses or land, you also complete IHT405 to describe the property.
Working out the deceased's share
The share for Inheritance Tax can differ from the legal title. For land and buildings the deeds usually set out each owner's share. For other assets, each owner's share usually matches what they contributed. If the deceased's share doesn't match their contribution, you explain why on the form.
Here's the trap with joint bank accounts. If the deceased provided all the funds, for example an elderly parent who added a child's name for convenience, the deceased's share is the whole account. If the other owner withdrew funds for their own use, those withdrawals may be gifts to report on IHT403. And if the deceased paid nothing in, none of the account counts unless the other owner meant it as a gift to them.
The 10% discount on a shared house
A share of a house is often worth less than a simple fraction of the whole, because nobody pays full price for half a house they can't sell alone. Under English law, the Notes let you reduce the arithmetical share by 10% as a starting point.
| HMRC example (English law) | Figure |
|---|---|
| Whole house | £120,000 |
| Deceased's half share | £60,000 |
| 10% starting discount | £6,000 |
| Value to include | £54,000 |
Under Scottish law the discount reflects the cost and delay of an action for division and sale, so it isn't a percentage: as a starting point you may deduct £4,000 from the whole value before working out the share. Both figures are starting points only, and the Valuation Office Agency may change them.
There's one big exception. You must not apply any discount if the other joint owner was the deceased's spouse or civil partner. In that case you include the plain arithmetical share. For bank accounts and shares there's no discount at all: a joint account worth £9,000 shared equally by 3 people gives a share of £3,000.
Survivorship: why HMRC asks
Some joint assets pass straight to the surviving owners rather than under the will or intestacy rules. Under English law that happens where the owners intended it, which is usual for joint bank accounts and for a house held as joint tenants rather than tenants in common. The conveyancing documents tell you which. HMRC needs to know because survivorship assets are included for Inheritance Tax but not for the probate or Confirmation value, and they matter for the reduced rate of tax.
Scotland is different again: a survivorship destination in a joint bank account doesn't, by itself, pass the funds to the survivor. Without a further act such as a deed of gift, the account passes under the will or intestacy of whoever provided the funds.
What's new on the August 2026 form
For deaths on and after 6 April 2026, relief at 100% on the combined value of qualifying agricultural and business property is limited to £2.5 million, with the excess qualifying for relief at 50%. Gifts of qualifying property made on or after 30 October 2024 and within 7 years of death count towards that figure. Shares on markets HMRC doesn't treat as listed, such as AIM, now only qualify for 50% relief. An unused allowance from a late spouse or civil partner can be transferred if claimed within the time limits on the form.
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Joint policies and mortgages
If a joint mortgage is deducted in box 2 and a policy was assigned to repay it, the deceased's share of the policy proceeds goes in box 6 as an asset. Joint life and survivor policies are also shown on IHT404 rather than on IHT410. Joint household bills, such as unpaid council tax, go in box 7, not box 2.
Where debts and reliefs go
Mortgages and loans secured on the box 1 property go in box 2 with the deceased's share of what's outstanding. Exemptions and reliefs go in box 4, for example spouse or charity exemption, or agricultural and business relief. The joint ownership discount isn't a relief, so it never goes in box 4 or box 9; it's built into the value you enter for the share.
The verdict
IHT404 is where estates most often get the value wrong in both directions: a full share declared for a convenience account the deceased funded, or a discount taken on a house shared with a spouse. Start with who paid in, check the deeds to see whether the owners held as joint tenants or tenants in common, apply the 10% starting discount only where it's allowed, and copy the totals to boxes 49 and 50 of form IHT400.
Frequently asked questions
What is IHT404?
It's the Inheritance Tax schedule for assets the deceased owned jointly with others, used with form IHT400.
Can I discount a jointly owned house on IHT404?
Under English law you may reduce the arithmetical share by 10% as a starting point, but not if the other joint owner was the deceased's spouse or civil partner.
Does a joint bank account go on IHT404?
Yes, in box 6. The deceased's share usually matches their contribution, so it can be the whole account if they provided all the funds.
Where do IHT404 totals go on IHT400?
The net total for houses, land and control shares goes to box 49, and the net total for other joint assets goes to box 50.
What is a survivorship asset?
A joint asset that passes automatically to the surviving joint owners rather than under the will or intestacy rules, such as most joint bank accounts in England and Wales.
Do foreign joint assets go on IHT404?
No. Jointly owned assets outside the UK go on Schedule IHT417, foreign assets.
