The following Trusts and Inheritance Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Two statutory rules apply on death:
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.
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:
Additionally, if more than six months have passed since the end of the month of death, the personal representatives must pay any instalments and interest due on any instalment option property in column B of form IHT400.
Personal representatives should follow the instructions in form IHT400 or the supplementary form IHT400 calculation to calculate the tax payable on delivery of the account.
See the IHT400 guidance note.
Trustees of settled property in which the deceased had an interest in possession and which is part of the inheritance tax estate can also pay tax due on the non-instalment option property for which they are liable before the grant is obtained. Otherwise, they must pay by the due date to avoid incurring interest for late payment.
Tax arising from an additional charge on
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