Paying the Inheritance Tax liability
When is it paid?
The due date for Inheritance Tax is six months from the end of the month in which the death took place. Interest will be charged after the six month period on any outstanding liability.
The tax must usually be paid before the grant of representation is issued. If an estate is complicated then it may be possible to obtain the grant of representation before the full liability has been paid.
In such a case the issue of the grant does not mean that the final Inheritance Tax liability has been agreed and the balance of the Inheritance Tax bill will, in any event, need to be paid within the six month limit.
Inheritance Tax on some assets, including land and buildings (including the deceased’s house), can be deferred and paid in equal installments over ten years. Interest will be charged in most cases.