Paying Inheritance Tax: Probate, Deadlines, and Paying in Instalments

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After a death, there is a practical sequence to follow: value the estate, get an Inheritance Tax reference number, pay what is due (usually before probate is granted), send form IHT400, and receive the code needed to apply for probate. This guide walks through that sequence, the deadlines, and the ways to pay — including paying from the deceased's own bank accounts and paying in instalments over ten years.

In short

Inheritance Tax must be paid by the end of the sixth month after the person died — if the person died in January, the tax must be paid by 31 July. An Inheritance Tax reference number must be obtained from HMRC at least 3 weeks before making a payment. Tax on property that takes time to sell can be paid in equal annual instalments over 10 years. Banks can pay some or all of the tax from the deceased's accounts before probate, using form IHT423.

The sequence

First, the estate is valued. Then an Inheritance Tax reference number is obtained from HMRC — at least 3 weeks before making a payment. A payment towards any tax due is usually needed before a grant of representation (probate) can be obtained; in Scotland this is called confirmation. Form IHT400 (the Inheritance Tax Account) and any supplementary pages are sent to HMRC; in England and Wales HMRC then sends a unique code to apply for probate online.

The 6-month deadline

Inheritance Tax must be paid by the end of the sixth month after the person died. GOV.UK's example: if the person died in January, Inheritance Tax must be paid by 31 July. HMRC charges interest if payment is not made by the due date. Payments can also be made on account, before the exact amount owed is known.

Paying from the deceased's accounts

The Direct Payment Scheme lets banks, building societies or investment providers pay some or all of the Inheritance Tax due from the deceased's accounts before probate, using form IHT423 — one form per account. This is often the simplest way to find the money for the tax bill, since the estate's own funds may be frozen until probate is granted.

Paying in instalments over 10 years

Inheritance Tax on things that may take time to sell can be paid in equal annual instalments over 10 years. The choice must be stated on form IHT400. The first instalment is due at the end of the sixth month after the death, and payments are then due every year on that date. No interest is payable on the first instalment unless it is paid late; interest is payable on later instalments. The tax must be paid in full when the assets (such as a house or shares) are sold. From 6 April 2026, instalments are interest-free if the asset qualifies for Agricultural Relief or Business Relief — though late instalments still attract interest from the due date.

Probate differs by nation

The tax rules are UK-wide, but the probate process differs by nation. England and Wales use a grant of representation (probate). Scotland uses confirmation. Northern Ireland has its own forms. The tax deadlines above apply everywhere; the application process follows the nation's own rules.

Related guides

Sources: GOV.UK, Pay your Inheritance Tax bill.

General information only. This page explains UK Inheritance Tax in plain English. It is not tax advice, and it cannot tell you what you owe or what you should do about your own tax or estate. Always confirm the current thresholds, rules, and your own position on GOV.UK or with HMRC before you act, and get professional advice for anything complicated. Contact: hello [at] tapetoolhq.com.