When must inheritance tax be paid?
Answered 11 March 2026
When Must Inheritance Tax Be Paid?
What the law says
The general rule under IHTA 1984, s.226(1) is that IHT on the value transferred by a chargeable transfer is due six months after the end of the month in which the chargeable transfer is made. However, for transfers made after 5 April and before 1 October in any year (other than on death), tax is instead due at the end of April in the following year.
Specific rules apply in the following cases:
- On death: Personal representatives must pay all the tax for which they are liable on delivery of their account (i.e. when submitting the IHT return to HMRC).
- Potentially exempt transfers (PETs) that prove chargeable: tax is due six months after the end of the month in which the transferor's death occurs.
- Additional tax on chargeable transfers within 7 years of death: the excess tax is due six months after the end of the month in which the death occurs.
- Relevant property settlements (Chapter III, Part III charges): tax is due six months after the end of the month in which the chargeable transfer is made.
- Charges under ss.32, 32A, 79 or 126 (e.g. conditionally exempt property): tax is due six months after the end of the month in which the chargeable event occurs.
Instalment option: Where tax is attributable to qualifying property (land, certain shares/securities, or a business), the taxpayer may elect to pay by ten equal yearly instalments, with the first instalment due six months after the end of the month of death (for death transfers) or at the normal due date (for other transfers). If the property is sold before all instalments are paid, the outstanding tax becomes immediately payable.
HMRC guidance / practice
HMRC confirms that personal representatives (PRs) are legally required to pay all IHT for which they are liable on delivery of their IHT account before a grant of probate can be issued. The Senior Courts Act 1981, s.109 requires that the account demonstrates IHT has been paid (or that none is due) before a grant can be issued or resealed in the UK.
In certain circumstances, HMRC may 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"), though late payment interest will continue to accrue on any unpaid tax.
The IHT Direct Payment Scheme (DPS), available from 31 March 2003, provides an alternative means of payment, allowing funds to be paid directly from the deceased's bank account.
Citation sources
PART VIII ADMINISTRATION AND COLLECTION Payment Payment by instalments—land, shares and businesses. 227 1 Where any of the tax payable on the value transferred by a chargeable transfer is attributable to the value of qualifying property and— a the transfer is made on death, or b the tax so attributable is borne by the person benefiting from the transfer, or c the transfer is made under Part III of this Act and the property concerned continues to be comprised in the settlement, the tax so attribu
y the transferee throughout the period beginning with the date of the chargeable transfer and ending with the death of the transferor (or, if earlier, the death of the transferee), or b that for the purposes of determining the tax, or additional tax, due by reason of the death of the transferor, the value of the property is reduced in accordance with the provisions of Chapter I or Chapter II or Part V of this Act by virtue of section 113B or section 124B above. 2 In this section “ qualifying pro
Other cases in which the tax is due six months after the end of the month in which the transferor’s death occurs include Potentially exempt transfers (PETs) (IHTM04057) which prove to be chargeable transfers tax charged under the gift with reservation (GWR) (IHTM04071) provisions treated either as part of the transfer on death, and so within IHTA84/S226 (1), or as failed PETs, and so within IHTA84/S226 (3A) any extra tax payable on a chargeable transfer under Chapter III Part III IHTA 1984 (sett
chargeable under Chapter 3 of Part 3 of this Act on the value transferred by a chargeable transfer, other than any for which the due date is given by subsection (3B) above, is due six months after the end of the month in which the chargeable transfer is made. 4 Tax chargeable under section 32, 32A , 79 or 126 above or under Schedule 5 to this Act . . . shall be due six months after the end of the month in which the event by reason of which it is chargeable occurs. 5 The Board may in the first in
PART VIII ADMINISTRATION AND COLLECTION Payment Payment: general rules. 226 1 Except as otherwise provided by the following provisions of this Part of this Act, the tax on the value transferred by a chargeable transfer shall be due six months after the end of the month in which the chargeable transfer is made or, in the case of a transfer made after 5th April and before 1st October in any year otherwise than on death, at the end of April in the next year. 2 Personal representatives shall, on del
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
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.