How does HMRC enforce inheritance tax debts?
Answered 17 March 2026
How HMRC Enforces Inheritance Tax Debts
What the law says
The Inland Revenue Charge (IHTA 1984, s.237)
The primary enforcement mechanism is the statutory "Inland Revenue charge." Where any IHT charged on the value transferred by a chargeable transfer, or any interest on it, is unpaid, a charge for the amount unpaid is automatically imposed in favour of HMRC on:
- any property to the value of which the value transferred is wholly or partly attributable; and
- where property becomes comprised in a settlement by virtue of the chargeable transfer, any property comprised in that settlement.
This charge also extends to any property directly or indirectly representing the original property.
Important exceptions to the charge:
- Where the chargeable transfer is made on death, personal or movable property situated in the UK that was beneficially owned by the deceased immediately before death and vests in personal representatives is not subject to the Inland Revenue charge.
- For potentially exempt transfers that prove chargeable, property disposed of to a purchaser before the transferor's death is not subject to the charge, but property otherwise disposed of before death (and property representing it) remains subject to the charge.
- No heritable property situated in Scotland is subject to the Inland Revenue charge, though any other property representing it will be subject to the charge.
- The charge takes effect subject to any incumbrance on the property that is allowable as a deduction in valuing it for IHT purposes.
- Except as provided by s.238, a disposition of property subject to an Inland Revenue charge shall take effect subject to that charge.
Effect on Purchasers (IHTA 1984, s.238)
Where property subject to an Inland Revenue charge is disposed of to a purchaser, the charge ceases to bind the purchaser if, at the time of disposition:
- For land in England and Wales: the charge was not registered as a land charge or, for registered land, was not protected by notice on the register;
- For land in Northern Ireland (registered title): the charge was not entered as a burden or protected by caution/inhibition; for other land in Northern Ireland, the purchaser had no notice;
- For personal property in the UK and property outside the UK: the purchaser had no notice of the facts giving rise to the charge; or
- A certificate of discharge had been given by HMRC under s.239 and the purchaser had no notice of any invalidating fact.
Where the charge does not cease on disposition to a purchaser, it extinguishes at the end of six years beginning with the later of: (a) the date the tax became due, or (b) the date a full and proper account was first delivered to HMRC.
Certificates of Discharge (IHTA 1984, s.239)
Where a person liable for IHT applies to HMRC specifying property and HMRC is satisfied the tax attributable to it has been or will be paid, HMRC may give a certificate of discharge — and must do so if the chargeable transfer was made on death or the transferor has since died.
A certificate under s.239(1) discharges the property from the Inland Revenue charge on acquisition by a purchaser; a certificate under s.239(2) discharges all persons from any further claim for the tax and extinguishes the Inland Revenue charge.
However, a certificate does not discharge any person from tax in cases of fraud or failure to disclose material facts, and does not affect further tax that may become payable in certain circumstances (e.g. under ss.93, 142–145 IHTA 1984).
Interest on Unpaid IHT
Interest on unpaid IHT runs under IHTA 1984, s.233. Notably, interest on overdue IHT is not deductible as a debt of the estate (unlike commercial interest on debts of the deceased).
HMRC guidance / practice
Specialist Debt Management Unit
HMRC's Debt Management Estates & Trusts unit in Nottingham handles pre-enforcement collection and recovery for deceased cases. If an unknown tax liability of more than £1,000 comes to light after a s.27 distribution notice date has passed (but within normal self-assessment time limits), the matter is referred to that unit. If HMRC fails to make a claim against the estate before the date specified in a s.27 notice, personal representatives are no longer required to meet those liabilities — though HMRC can still pursue individual beneficiaries for the tax due.
Enforcement Case Signal and Escalation
HMRC uses an Enforcement Case Signal on its Integrated Debt Management System (IDMS) when a case reaches the enforcement stage. Enforcement action at that stage is always taken by a Debt Technical Office (DTO), with transfer to the Enforcement & Insolvency Service (EIS) for more serious cases.
International Exchange of Information
Where IHT enforcement involves overseas assets or non-UK residents, HMRC may exchange information with overseas tax authorities under Double Taxation Agreements or multilateral instruments. Such exchanges for IHT purposes must be directed through the IHT Technical Group at Trusts and Estates.
Citation sources
sfer— a property concerned, or an interest in property concerned, which has been disposed of to a purchaser before the transferor’s death is not subject to the Inland Revenue charge, but b property concerned which has been otherwise disposed of before the death and property which at the death represents any property or interest falling within paragraph (a) above shall be subject to the charge; and in this subsection “ property concerned ” means property to the value of which the value transferre
Valuers may encounter situations where an exchange of information with an overseas tax authority may be of benefit either to HMRC or to that overseas tax authority. Examples may include situations involving the disposal of shares and other assets by non-UK residents or transactions involving assets located abroad. The exchange of information between HMRC and tax authorities in other territories is an essential tool in enabling authorities both to administer and enforce their own taxes and to com
the death). 3 Subject to subsection (4) below,— a a certificate under subsection (1) above shall discharge the property shown in it from the Inland Revenue charge on its acquisition by a purchaser, and b a certificate under subsection (2) above shall discharge all persons from any further claim for the tax on the value transferred by the chargeable transfer concerned and extinguish any Inland Revenue charge for that tax. 4 A certificate under this section shall not discharge any person from tax
PART VIII ADMINISTRATION AND COLLECTION Inland Revenue charge for unpaid tax Effect of purchases. 238 1 Where property subject to an Inland Revenue charge, or an interest in such property, is disposed of to a purchaser, then if at the time of the disposition— a in the case of land in England and Wales, the charge was not registered as a land charge or, in the case of registered land, was not protected by notice on the register, or b in the case of land in Northern Ireland the title to which is r
If an unknown tax debt does come to light, HMRC must make a claim against the estate before the given date. This cannot be less than 2 months from the date of the Section 27 notice. If HMRC fails to make a claim before the given date, the personal representatives no longer have to meet those tax liabilities. However, HMRC can still pursue the individual beneficiaries for the tax due. Debt Management’s specialist unit Estates & Trusts, Nottingham deals with pre-enforcement collection and recovery
Information on the transfer of the Recovery business responsibility from a Debt Technical Office (DTO) to an Enforcement & Insolvency Service office (EIS) can be found in the Debt Management & Banking Manual (DMBM685000). The Enforcement Case Signal does not mean that the case is working with the Enforcement & Insolvency Service. The signal can be shown on both cases working with the DTO and EIS and will be automatically set by the Integrated Debt Management System (IDMS) when the associated Nex
PART VIII ADMINISTRATION AND COLLECTION Certificates of discharge Certificates of discharge. 239 1 Where application is made to the Board by a person liable for any tax on the value transferred by a chargeable transfer which is attributable to the value of property specified in the application, the Board, on being satisfied that the tax so attributable has been or will be paid, may give a certificate to that effect, and shall do so if the chargeable transfer is one made on death or the transfero
PART VIII ADMINISTRATION AND COLLECTION Inland Revenue charge for unpaid tax Imposition of charge. 237 1 Except as otherwise provided, where any tax charged on the value transferred by a chargeable transfer, or any interest on it, is for the time being unpaid a charge for the amount unpaid (to be known as an Inland Revenue charge) is by virtue of this section imposed in favour of the Board on— a any property to the value of which the value transferred is wholly or partly attributable, and b wher
For this purpose, interest includes - interest on unpaid legacies interest arising during the administration period on debts of the deceased provided this is paid at a commercial rate and in Scotland, interest on prior and legal rights but does not include interest on overdue tax (ITTOIA 2005/s869) interest on unpaid inheritance tax (IHTA 1984/ s233(3)).