Q&As

Where the executors elect to pay inheritance tax by instalments, how is the interest calculated on any overpayments or early payments of instalments paid to HMRC?

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Published by a ³ÉÈËÓ°Òô Private Client expert
Published on: 13 October 2023
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While inheritance tax (IHT) on death generally becomes due six months after the end of the month in which the individual died, certain property may qualify for the 'instalment option' under sections 227–228 of the Inheritance Tax Act 1984 (IHTA 1984). These provisions have the effect that the IHT attributable to the qualifying property can be paid in ten equal annual instalments. The personal representatives (PRs) elect for the instalment option in the Form IHT400. The first instalment is payable on the usual 'due date', being six months from the end of the month of the individual's death and subsequent instalments are due at annual intervals and the final payment is due nine years later (ie, nine years and

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