Pay your Inheritance Tax bill

Printable version

1. Overview

You must pay Inheritance Tax by the end of the sixth month after the person died. For example, if the person died in January, you must pay Inheritance Tax by 31 July.

There are different due dates if you바카라 사이트™re making payments on a trust.

HM Revenue and Customs (HMRC) will charge you interest if you do not pay by the due date.

You usually need to make a payment towards any Inheritance Tax due before you can get a 바카라 사이트˜grant of representation바카라 사이트™ (also known as 바카라 사이트˜probate바카라 사이트™). This is called 바카라 사이트˜confirmation바카라 사이트™ in Scotland.

This guide is also available in Welsh (Cymraeg).

How to pay

You바카라 사이트™ll need to get a payment reference number before you can pay your Inheritance Tax bill.

Pay from your bank account

You can pay from your own bank account or a joint account with the deceased.

Make an online payment by:

  • approving through your bank account
  • bank transfer

You can also pay:

You can claim the money back from the deceased바카라 사이트™s estate or the beneficiaries once you get probate.

Pay from accounts owned by the deceased

You can pay using the deceased바카라 사이트™s:

If you cannot pay

If you바카라 사이트™re unable to release funds from the estate and cannot pay another way, you can ask to postpone paying Inheritance Tax.

If you do not know how much to pay

You can make payments before you know the exact amount of Inheritance Tax owed by the deceased person바카라 사이트™s estate. These are known as 바카라 사이트˜payments on account바카라 사이트™.

Check your payment has been received

HMRC do not send receipts for each payment you make. They바카라 사이트™ll write to tell you when you바카라 사이트™ve paid all the Inheritance Tax and interest you owe.

If you바카라 사이트™ve paid through your own bank or building society, check your statement to confirm the payment has left your account.

2. Get a payment reference number

You바카라 사이트™ll need to get an Inheritance Tax reference number from HM Revenue and Customs (HMRC) at least 3 weeks before you make a payment.

You can apply for one:

3. Approve a payment through your online bank account

You can pay Inheritance Tax directly using your online or mobile bank account.

When you바카라 사이트™re ready to pay, .

Select the 바카라 사이트˜pay by bank account바카라 사이트™ option. You바카라 사이트™ll then be directed to sign in to your online or mobile banking account to approve your payment.

The payment is usually instant but can take up to 2 hours to show in your bank account.

You바카라 사이트™ll need to have your online banking details ready to pay this way.

4. Make an online or telephone bank transfer

You can pay Inheritance Tax from your own bank account or a joint bank account if you held one in joint names with the deceased. You can claim it back from the deceased바카라 사이트™s estate.

You can make a bank transfer using Faster Payments, CHAPS or Bacs:

  • from your online bank account
  • by phoning your bank

Make your payment to HM Revenue and Customs바카라 사이트™ (HMRC) account using the following details:

  • sort code - 08 32 10
  • account number - 12001136
  • account name - HMRC Inheritance Tax

You바카라 사이트™ll need to use your Inheritance Tax payment reference number as the payment reference.

How long it takes

Payments made by Faster Payments will usually reach HMRC on the same or next day, including weekends and bank holidays.

CHAPS payments usually reach HMRC the same working day if you pay within your bank바카라 사이트™s processing times.

Bacs payments usually take 3 working days.

Check your bank바카라 사이트™s transaction limits and processing times before making a payment.

Overseas payments

Use these details to pay from an overseas account:

  • Business Identifier Code (BIC) - BARCGB22
  • account number (IBAN) - GB66 BARC 2011 4763 4955 90
  • account name - HMRC Inheritance Tax

HMRC바카라 사이트™s banking address is:

Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP

5. At your bank or building society

You can pay Inheritance Tax from your own bank account or a joint bank account if you held one in joint names with the deceased. You can claim it back from the deceased바카라 사이트™s estate.

You can pay at a branch by cash or cheque.

Please complete one of your bank바카라 사이트™s paying in slips with the following HMRC bank account details:

  • sort code - 25 61 21
  • account number - 63495590
  • account name - HMRC Inheritance Tax

Make your cheque payable to 바카라 사이트˜HM Revenue and Customs only바카라 사이트™.

Write the name of the deceased and your Inheritance Tax payment reference number on the back of the cheque. You바카라 사이트™ll find the reference number on the letter HMRC sent you.

HMRC will accept your payment on the date you make it and not the date it reaches HMRC바카라 사이트™s account, if you pay between Monday and Friday.

6. By cheque through the post

Make your cheque payable to 바카라 사이트˜HM Revenue and Customs only바카라 사이트™.

Write both of the following on the back of the cheque:

Your payment may be delayed if you do not fill in your cheque properly.

Do not fold your cheque.

Send your cheque separately to any other forms or letters you need to send HMRC. If you send anything else with your cheque, your payment might be delayed.

Do not send cheques for probate fees to HMRC. Find out how to apply for probate and pay probate fees.

Where to send your cheque

HM Revenue and Customs
Inheritance Tax Team
BX5 5BD

Allow 10 working days for the payment to reach HMRC.

7. From the deceased's bank, savings or investment account

You can ask banks, building societies or investment providers to pay some or all of the Inheritance Tax due from the deceased person바카라 사이트™s accounts. This is called the 바카라 사이트˜Direct Payment Scheme바카라 사이트™.

Investment providers can include: 

  • National Savings & Investments (NS&I)Ìý
  • brokers investment firms
  • wealth management accounts

You can start this process before you바카라 사이트™ve got probate (known as 바카라 사이트˜confirmation바카라 사이트™ in Scotland).

  1. Ask the bank, building society or investment provider to make you a 바카라 사이트˜personal representative바카라 사이트™ - each one will do this in a different way and some may not be part of the Direct Payment Scheme.

  2. Get your Inheritance Tax payment reference number.

  3. Fill in form IHT423 and send it to the bank, building society or investment provider. Send a separate form for each account you want to pay HMRC from.

  4. Send Inheritance Tax Account form IHT400 and any supplementary pages or supporting documents to HMRC. If you바카라 사이트™re in Northern Ireland, include Probate Summary form IHT421. If you바카라 사이트™re in Scotland, include Confirmation form C1.

Send the forms to the following address:

HM Revenue and Customs
Inheritance Tax Team
BX9 1HT

After you바카라 사이트™ve sent the forms

The bank, building society or investment provider will pay HMRC some or all of the Inheritance Tax owed.

What happens next depends on which country in the UK you바카라 사이트™re in.

In England and Wales 

HMRC will send you a unique code so you can apply for probate online.

In Northern Ireland and Scotland

HMRC will stamp and return Probate Summary form IHT421 (Northern Ireland) or Confirmation form C1 (Scotland) - this is confirmation that you바카라 사이트™ve got probate.

8. Using British government stock

Write to Computershare Investor Services, who run the British government stock scheme.

Tell them you want to pay Inheritance Tax and how much of the stock you want to use. Enclose a copy of the death certificate and the stock reference number (if you have it).

British 바카라 사이트 Stocks (Gilts)
Computershare Investor Services plc
The Pavilions
Bristol
BS99 6ZW

Computershare Investor Services plc
gilts@computershare.co.uk
Telephone: 0370 703 0143
Find out about call charges

At the same time, send HMRC:

HM Revenue and Customs
Inheritance Tax Team
BX9 1HT

HMRC will contact Computershare and ask for the money to be transferred. This could take up to 4 weeks.

Do not pay this way if you need to get probate (known as 바카라 사이트˜confirmation바카라 사이트™ in Scotland) quickly. (Probate is the right to deal with the deceased person바카라 사이트™s property, money and possessions.)

After the money has been transferred

If the amount transferred is not enough to cover the Inheritance Tax you owe, HMRC will write to tell you how much to pay and how to pay it.

In England and Wales

HMRC will send you a unique code so that you can apply for probate online.

In Northern Ireland

HMRC will send your IHT421 form to the Probate Registry. The Probate Registry will confirm you have probate by sending you a 바카라 사이트˜grant of representation바카라 사이트™.

In Scotland

HMRC will return your Confirmation form C1 to you so you can apply for confirmation.

9. By transferring national heritage property

In very exceptional cases you may be able to make Inheritance Tax payments by transferring national heritage property to the Crown.

National heritage property may include:

  • buildings or land of historic, architectural, scenic or scientific interest
  • artworks, books and manuscripts or scientific collections of historic, scenic or scientific interest

Offers to make Inheritance Tax payments by transferring national heritage property to the Crown are dealt with on an individual basis.

Contact the HMRC Heritage team for information on making an offer.

HMRC Heritage
Telephone: 03000 562388
Find out about call charges

HMRC Heritage
HM Revenue and Customs
Ferrers House, PO Box 38
Castle Meadow Road
Nottingham
NG2 1BB

If your offer is accepted

Even if your offer바카라 사이트™s accepted, you must first pay all of the Inheritance Tax you owe through other means and have a 바카라 사이트˜grant of representation바카라 사이트™ (also known as 바카라 사이트˜probate바카라 사이트™). This is called 바카라 사이트˜confirmation바카라 사이트™ in Scotland.

Once your property has been transferred HM Revenue and Customs (HMRC) will repay the Inheritance Tax you바카라 사이트™ve paid.

10. In yearly instalments

You can pay your Inheritance Tax on things that may take time to sell in equal annual instalments over 10 years.

You must say on Inheritance Tax Account form IHT400 if you want to pay in instalments.

You바카라 사이트™ll usually have to pay interest on your instalments. Use the calculator to you바카라 사이트™ll need to pay.

You must pay the tax in full when you바카라 사이트™ve sold the deceased바카라 사이트™s assets, such as their house or shares.

When you must pay

The first instalment is due at the end of the sixth month after the death (for example if they died on 12 January, you바카라 사이트™d have to pay by 31 July). This is known as the 바카라 사이트˜due date바카라 사이트™. Payments are then due every year on that date.

Paying early

You can pay off the full tax and interest at any time. Write to HM Revenue and Customs (HMRC) Trusts and Estates asking for a final assessment (you do not have to include payment).

What you pay interest on

You will not pay any interest on the first instalment unless you pay late. On each later instalment you must pay interest on both of the following:

  • the full outstanding tax balance
  • the instalment itself, from the date it바카라 사이트™s due to the date of payment (if it바카라 사이트™s paid late)

What you can pay in instalments

Houses

You can pay 10% and the interest each year if you decide to keep the house to live in.

Shares and securities

You can pay in instalments if the shares or securities allowed the deceased to control more than 50% of a company.

Unlisted shares and securities

You can pay in instalments for 바카라 사이트˜unlisted바카라 사이트™ shares or securities (ones not traded on a recognised stock exchange) if they바카라 사이트™re worth more than £20,000 and either of these apply:

  • they represent 10% of the total value of the shares in the company, at the price they were first sold at (known as the 바카라 사이트˜nominal바카라 사이트™ value or 바카라 사이트˜face value바카라 사이트™)
  • they represent 10% of the total value of ordinary shares held in the company, at the price they were first sold at

You can find the face value of a share and whether it바카라 사이트™s an ordinary share on the share certificate.

You can also pay in instalments if either of these apply:

  • at least 20% of the total Inheritance Tax the estate owes is on assets that qualify for payment by instalments
  • paying Inheritance Tax on them in one lump sum will cause financial difficulties

Business run for profit

You can pay in instalments on the net value of a business, but not its assets.

Agricultural land and property

This is rare because most agricultural land and property is exempt from Inheritance Tax.

Gifts

You can pay in instalments if there is still Inheritance Tax to pay and you were given:

  • buildings
  • shares or securities
  • part or all of a business

If the gift was an unlisted share or security, it must still have been unlisted at the time of the death.

11. Trusts

  1. Get your Inheritance Tax payment reference number at least 3 weeks before you want to make a payment by filling in Form IHT122.

  2. Send Inheritance Tax Account form IHT100 to HM Revenue and Customs (HMRC).

  3. Pay the Inheritance Tax, either through a bank or building society or by cheque through the post.

Payment deadlines

Transfers

You must pay Inheritance Tax on transfers into a trust or out of a trust (known as 바카라 사이트˜exit charges바카라 사이트™) no later than 6 months after the end of the month the transfer was made.

10-year anniversary charge

You must pay inheritance Tax every 10 years from when the trust is set up. You must pay this no later than 6 months after each 10-year anniversary.

12. Pay early to avoid paying interest

You can make early Inheritance Tax payments before you know the exact amount the estate owes (this is known as a 바카라 사이트˜payment on account바카라 사이트™).

If you do not pay all the tax the estate owes by the due date, HM Revenue and Customs (HMRC) will charge you interest.

Find out the Inheritance Tax interest rates.

If you overpay

If you pay more money than the final bill says the estate owes, HMRC will refund the excess after you바카라 사이트™ve been given probate (confirmation in Scotland). Probate is the right to deal with the deceased person바카라 사이트™s property, money and possessions.

HMRC will also pay you interest on the amount you바카라 사이트™ve overpaid.

To receive the refund, you바카라 사이트™ll need to write to HMRC.

HM Revenue and Customs
Inheritance Tax Team
BX9 1HT

Put 바카라 사이트˜Repayment - further details바카라 사이트™ at the top of the letter.

Include the name, number and sort code of the bank account you want the refund to go to.

The letter must be signed by the same people who signed forms IHT400 and IHT100 if:

  • you바카라 사이트™re applying without the help of a solicitor or agent
  • the refund is being paid into a different bank account to the one nominated in IHT400 or IHT100

If you바카라 사이트™re an agent acting on behalf of the estate and you바카라 사이트™re not asking for the refund to be paid into a different bank account, only put your signature on the letter.