How do I pay inheritance tax to HMRC?
Answered 11 March 2026
Based on the sources retrieved, here is a comprehensive answer on how to pay Inheritance Tax (IHT) to HMRC:
How to Pay Inheritance Tax to HMRC
What the law says
Personal Representatives (PRs) are legally required to pay IHT before obtaining a grant of probate. Under IHTA84/S226(2), all PRs liable for tax under IHTA84/S200(1)(a) "shall, on delivery of their account pay all the tax for which they are liable."
The Senior Courts Act 1981/S109 further requires that before a grant can be issued or resealed in the UK, the IHT payable on delivery of the account must have been paid (or no tax must be payable).
HMRC guidance / practice
1. Electronic Bank Transfer (CHAPS/BACS) To pay by electronic transfer, taxpayers should follow the guidance at:
https://www.gov.uk/paying-inheritance-tax/bank-details-for-online-or-telephone-banking-chaps-bacs
CHAPS transfers money electronically from one bank account to another on the same day (as long as the payment is initiated within the time specified by the customer's bank, usually between 9:00am and 3:00pm). The customer will need to provide their bank with HMRC's bank account details and their IHT reference number.
2. IHT Direct Payment Scheme (DPS) From 31 March 2003, an alternative method called the IHT Direct Payment Scheme (DPS) has been available, which allows funds to be paid directly from the deceased's bank account. Guidance on using the DPS is at:
https://www.gov.uk/paying-inheritance-tax/deceaseds-bank-account
3. Acceptance in Lieu A person liable to pay IHT may settle part or all of the debt by disposing of a qualifying work of art or other object of national, scientific, historic or architectural interest to HMRC — this is known as acceptance in lieu.
4. Grant on Credit (Deferred Payment) In certain circumstances, HMRC will allow a PR to postpone payment of all or part of the tax and interest due on delivery of an account (known as a "grant on credit"). However, late payment interest will accrue as usual on any unpaid tax.
- Where the estate includes property being sold, PRs may give an undertaking to pay the outstanding IHT and any accrued interest from the sale proceeds within five working days of completion.
- Where the estate includes UK stocks, shares or insurance policies, PRs may undertake to pay the IHT within 4 weeks of the issue of the Grant of Probate, using proceeds from realising those assets.
5. Instalment Option For certain types of property (e.g. business assets, land), IHT may be paid in annual instalments over 10 years under IHTA84/S227.
⚠️ Important: For the most up-to-date bank account details and step-by-step payment instructions, always refer to the official HMRC guidance at gov.uk/paying-inheritance-tax, as specific account numbers and sort codes are not reproduced in HMRC's internal manuals.
Citation sources
In consideration of HMRC agreeing to issue form IHT421 without requiring full payment of the inheritance tax due upon delivery of the account I/we [full name and address] undertake: To pay the outstanding Inheritance Tax and any interest accrued (except for any tax which continues to be paid by instalments) from the sale proceeds of [name and address of property] [after payment of the outstanding mortgage of £XXXX*] within five working days of completion of the sale of the property. I/We underta
To pay by electronic transfer taxpayers should use the following guidance https://www.gov.uk/paying-inheritance-tax/bank-details-for-online-or-telephone-banking-chaps-bacs.
The law requires Personal Representatives (PRs) (IHTM05012) to pay all or part of the Inheritance Tax (IHT) due on the deceased’s estate before they can obtain a grant. IHTA84/S226 (2) states that all PRs who are liable for the tax by reason of IHTA84/S200 (1)(a) 'shall, on delivery of their account pay all the tax for which they are liable'. The guidance at IHTM30172 explains how to work out the amount that needs to be paid on delivery. The Senior Court Act 1981/S109 requires that an account
In the estate of [name of deceased and Inheritance Tax reference number] In consideration of HMRC agreeing to issue the letter with a unique code/form IHT421/C1 [as appropriate] without requiring full payment of the Inheritance Tax due upon delivery of the account I/we Full name: ……………………………………… Address: ……………………………………… Full name: ……………………………………… Address: ………………………………………… undertake: To use my/our best endeavours to pay the Inheritance Tax and interest due on delivery of the account within 4 wee
Some content of this manual is being considered for archiving. If there is content you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know as soon as possible. CHAPS transfers money electronically from one bank account to another on the same day, as long as the payment is initiated within the time specified by the customer's bank (usually between 9:00am and 3:00pm). The customer will need to provide their bank with HMRC's bank account details and their reference number. Custom
From 31 March 2003 an alternative means of payment is available to taxpayers called the IHT Direct Payment Scheme (DPS). The link below will guide you through the appropriate steps when using the IHT direct payment scheme https://www.gov.uk/paying-inheritance-tax/deceaseds-bank-account There are separate instructions you must follow when making a repayment of tax (IHTM31667) paid using DPS.
This allows a person who is liable to pay HMRC Inheritance Tax, Capital Transfer Tax or Estate Duty to settle part, or all of the debt, by disposing of a work of art or other object.
Inheritance Tax (IHT) on a taxable partnership interest may be paid by instalments, IHTA84/S227. The instalments will be interest‑free, IHTA84/S234 (IHTM30363). However, Articles of Partnership often contain a provision by which the surviving partners will purchase or will have the option to purchase the interest of a deceased partner. The instalment option ceases on sale, and the balance of tax falls due at once. If the surviving partners pay the purchase price in stages, each part-payment is t