Selling an Inherited Property UK 2026: Probate, Tax, and Timing

An inherited property is rarely a simple inheritance. The legal and tax requirements that surround a probate sale catch executors and beneficiaries by surprise more often than not. The 2026 probate backlog at HM Courts & Tribunals Service is worse than it was a decade ago; the inheritance tax thresholds have stood still while property prices have not; and HMRC has tightened the rules on capital gains during the probate period. Here is what actually happens in 2026 and where the time and money go.

The basic sequence

1. Death registered (5 days in England and Wales, 8 in Scotland).
2. Funeral arranged, will located, executor identified.
3. Property valued at the date of death by a RICS-registered surveyor.
4. IHT calculated and IHT400 forms submitted to HMRC.
5. IHT paid (or payment plan agreed).
6. Probate application submitted to HMCTS.
7. Grant of Probate issued (currently 16 weeks average).
8. Property can be marketed at any time after death but cannot complete until probate is granted.
9. Sale completes, proceeds distributed under the will.

The probate backlog

HM Courts & Tribunals Service publish quarterly statistics. The current average wait from probate application to Grant of Probate is 16 weeks for paper applications and 8 weeks for online. Some estates with complex IHT calculations or contested wills wait significantly longer.

The probate office cannot accept the application until IHT400 has been processed by HMRC, which adds another 4 to 12 weeks to the timeline for taxable estates.

The IHT trap: tax due before grant

Inheritance tax is due within 6 months of death, often before the Grant of Probate is issued. The estate has the cash blocked until probate is granted, but HMRC still wants paying. Three options:

• Direct Payment Scheme: HMRC can take IHT directly from a bank account in the deceased's name without waiting for probate. Most banks now participate.
• Executor's loan: a probate loan from a specialist lender. High interest (8% to 12%) but bridges the gap. Repaid from the estate when probate is granted.
• Beneficiary loan: beneficiaries can lend money to the estate. Recovered from the estate without interest.

HMRC accepts payment of property-related IHT in 10 annual instalments interest-bearing. This can be a useful cash-flow tool for large estates with limited liquid assets.

Capital gains tax during probate

If the property rises in value between the date of death and the sale, capital gains tax (CGT) applies. The base cost is the probate value (the formal valuation at the date of death). The gain is the sale price minus the probate value, minus allowable costs (estate agent fees, legal fees, improvements during ownership).

Each beneficiary gets their own annual exempt amount, which is £3,000 in 2026/27. The estate itself (during the probate period) gets one annual exemption, equal to a beneficiary's.

CGT rates from April 2024 onwards: 18% for basic-rate band, 24% for higher-rate band, on residential property gains.

The probate value mistake

Many executors get a low probate valuation to reduce IHT. This costs money later. If the property sells for more than the probate value, the gain triggers CGT, and HMRC can also reopen the IHT calculation if the value was understated by more than 10%.

A realistic probate valuation, based on three RICS comparables, is almost always the best long-term choice.

Selling before vs after probate

You can market a probate property before the grant. Most agents and many buyers are happy to wait if probate is in process. You can:

• Market the property.
• Accept an offer subject to probate.
• Instruct conveyancers to start the process.
• Order searches, prepare contract.

You cannot:

• Exchange contracts until probate is granted.
• Complete the sale until probate is granted.
• Transfer the title to the buyer until probate.

What buyers should expect

Buying a probate property is normal but slower:

• Expect 4 to 6 months from offer to completion (vs 3 to 4 for a normal sale).
• The seller cannot give Title Guarantee in the standard form; they sell “in the capacity of personal representative”.
• Vacant possession sometimes harder to arrange if a relative still lives in the property.
• Mortgage offers can expire during the wait; extension needed.

Insurance during the probate period

The deceased's buildings insurance may lapse 30 to 60 days after death. Vacant property insurance is required during probate; cost £400 to £900 a year (more if the property has been empty for over 30 days). The executor arranges this from the estate's funds.

The 6-month council tax exemption

Empty inherited property is exempt from council tax for 6 months from the Grant of Probate (Class F exemption). After that, full council tax applies, and many councils now apply a long-term empty premium after 12 months. See the council tax exemptions guide for the local authority rules.

Practical timeline for 2026 probate

1. Week 1 to 2: register death, locate will, instruct probate solicitor.
2. Week 3 to 6: property valuation, asset valuation, IHT400 prepared.
3. Week 6 to 12: IHT400 submitted to HMRC, IHT paid (Direct Payment Scheme or loan).
4. Week 12 to 14: probate application submitted (online if possible).
5. Week 20 to 28: Grant of Probate issued.
6. From week 6: property can be marketed. Most agents recommend starting at month 3.
7. Sale typically completes around month 7 to 9 after death.