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Time for payment

Two statutory rules apply on death:

1. •

   tax is ‘due’ six months after the end of the month of death and carries interest from the ‘due’ date until paid. There is a possibility of payment by instalments, but this applies to certain types of property only ― see the ‘Availability of instalment option on death’ below

2. •

   personal representatives must pay all tax for which they are liable on delivery of form IHT400

   To the extent that the instalment option is available this is limited to such instalments that have become due.

Consequently, personal representatives must pay all tax on non-instalment property for which they are liable in order to obtain a grant of probate, notwithstanding the tax is not yet ‘due’. Non-instalment option property is broadly:

1. •

   the assets included in column A of form IHT400, plus

2. •

   any joint property passing by survivorship, and

3. •

   foreign property not qualifying for instalments

Additionally, if more than six months have passed since the end of the month