Commentary

I11.405 Interest on unpaid IHT

IHT, trusts and estates

I11.405 Interest on unpaid IHT

I11.405 Interest on unpaid IHT

Interest on unpaid IHT runs, as a general rule, from the date on which the IHT became due. Thus, in respect of lifetime chargeable (not potentially exempt) transfers made after 5 April and before 1 October interest runs from 30 April in the following year1.

However, there are exceptions, namely:

  1.  

    (a)     interest runs from the end of the six month period beginning with the end of the month in which the chargeable event or death occurred where IHT becomes payable on2

    1.  

      (1)     breach of an undertaking or on a death (including tax or additional tax on a lifetime potentially exempt or chargeable transfer made within seven years of death)3

    2.  

      (2)     a disposition involving designated objects of national, scientific, historic or artistic interest or land and buildings (with associated contents) of scenic, historic, scientific or architectural interest4

    3.  

      (3)     timber elected to be left out of account when determining the value of the deemed chargeable transfer on the death of any person5, or

    4.  

      (4)     (prior to repeal, for deaths occurring on or after 6 April 2011) tax chargeable in relation to alternatively secured pensions under ss 151B, 151D and 151A(6)

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial