How to pay Inheritance Tax
This guide offers a reminder of Inheritance Tax payment deadlines and explains all of the available payment options.
HM Revenue & Customs (HMRC) recommends that you make all of your Inheritance Tax payments electronically. Paying electronically:
- is safe and secure
- gives you better control over your money
- provides certainty about when your payment will reach them
- avoids postal delays
- may lower your bank charges
- lets you pay at a time convenient to you if you use Internet or telephone banking
On this page:
- Inheritance Tax payment deadlines
- How do I get an Inheritance Tax reference number?
- Paying by yearly instalments
- Payments on account
- Paying by Internet or telephone banking
- Paying by CHAPS transfer
- Paying by Bank Giro
- Paying by post
- Paying from the deceased’s bank account (Direct Payment Scheme)
- Paying using the deceased’s British Government Stock
- Paying using the deceased’s National Savings
- Transferring National Heritage property to the Crown
- Correspondence or receipt requests
- Information about the Faster Payment service
- Information about Direct Debit payments
- More useful links
Inheritance Tax payment deadlines
Payments by executors/personal representatives following a death
Payment is due no later than six months after the end of the month in which the deceased died. For example, if the month of death was January 2009 then the due date would be 31 July 2009.
Interest is charged on any Inheritance Tax that has not been paid by the due date.
Payments by trustees on trust transfers and ten-yearly charge
Payments on trust transfers
For transfers made between 6 April and 30 September inclusive, any Inheritance Tax payment due must be paid by 30 April the following year.
For transfers made between 1 October and 5 April inclusive in any year, any Inheritance Tax due must be paid no later than six months after the end of the month in which the transfer was made.
The ten-yearly charge
The ten-yearly charge (a 'periodic' tax charge of up to 6 per cent on the value of trust assets over the Inheritance Tax threshold or ‘nil rate band’) must be paid on the anniversary of the execution date. You must also pay an 'exit' charge proportionate to the periodic charge when funds valued above the Inheritance Tax nil rate band are taken out of a trust between ten-year anniversaries.
How do I get an Inheritance Tax reference number?
If you’re paying Inheritance Tax on an estate
When paying Inheritance Tax on an estate you will need to apply for an Inheritance Tax reference number before you send in form IHT400 ‘Inheritance Tax Account’ or pay any tax. The reference is made up of 11 or 12 characters and starts with a double letter ‘SS’ or ‘ST’, for example SS123456/08X or ST010446/08X.
You should apply for the reference number at least three weeks before the date you expect to make your payment.
You can apply for the reference number:
- online - by using the link below
- by post - by completing and sending form IHT422 to the relevant address shown below
When they receive your reference request, HMRC will send you a unique reference number by post that you should quote in any calls or correspondence. They will also send a pre-referenced payslip, which you should use to pay the tax.
Apply for an Inheritance Tax reference number online
Download form IHT422 Application for Inheritance Tax reference (PDF 39K)
Where to send form IHT422 if applying by post
| If you are based in England and Wales | If you are based in Scotland | If you are based in Northern Ireland |
|---|---|---|
| HM Revenue & Customs Ferrers House PO Box 38 Castle Meadow Road Nottingham NG2 1BB |
HM Revenue & Customs Meldrum House 15 Drumsheugh Gardens Edinburgh EH3 7UG |
HM Revenue & Customs Level 3, Dorchester House 52-58 Great Victoria Street Belfast BT2 7QL |
If you’re paying Inheritance Tax on a trust
If you’re completing form IHT100 Inheritance Tax account for the first time you must also apply for an Inheritance Tax reference number. You should use this for all future payments in respect of the trust.
However, if you wish to make a payment at the same time as completing form IHT100 for the first time (and so don’t yet have a reference number), you can enclose a cheque. In this instance please make the cheque payable to ‘HM Revenue & Customs only’ and include details of the trust (such as the name of the settlement) on the back so that HMRC can trace it to the right customer. If you make further payments in the future HMRC recommends that you pay electronically using the reference number they will send to you.
Paying Inheritance Tax by yearly instalments
On certain types of assets, such as the deceased’s house, you can pay Inheritance Tax by yearly instalments over ten years. The first instalment is due on the date when the whole tax would have been due.
You can indicate on form IHT400 Inheritance Tax Account that you wish to pay in instalments (go to box110). Please note the information in the link below regarding interest due when paying by instalments.
You can make your yearly instalment payments using any of the payment methods listed elsewhere in this guide.
- Paying Inheritance Tax by Internet or telephone banking
- Paying Inheritance Tax by CHAPS transfer
- Paying Inheritance Tax by post
Download form IHT400 Inheritance Tax Account (PDF 275K)
Find out how to calculate interest on Inheritance Tax paid by instalments
How to pay Inheritance Tax via payment on account
You may send money on account to HMRC at any time, even if you have not received a calculation of how much Inheritance Tax you will have to pay. This will stop interest running on the amount you have sent. (This amount is shown on HMRC’s calculations as a 'deposit'.) When HMRC sends a calculation, it will show the deposit set off against the amount due.
1. Apply to HMRC for an Inheritance Tax reference number and payslip using form IHT422. You should do this at least three weeks before you expect to make the payment See the section ‘How do I get an Inheritance Tax reference number?’
2. HMRC will send you a reference number and pre-referenced payslip in the post. You should use the payslip to pay the tax. The payslip can be used only for payments regarding this estate. If you do not use this payslip for payments by cheque or over the counter at your bank, they may not be able to credit your payment to the correct Inheritance Tax account.
3. Once you have got an Inheritance Tax reference you will also need to fill in forms IHT400 Inheritance Tax Account and IHT421 Probate Summary (or C1 Confirmation in Scotland).
You can make your payment using any of the payment methods listed elsewhere in this guide.
See the section Paying Inheritance Tax by Internet or telephone banking
See the section Paying Inheritance Tax by CHAPS transfer
See the section Paying Inheritance Tax by post
Get form IHT400 Inheritance Tax Account
Get form IHT 421 Probate Summary
Paying Inheritance Tax by Internet or telephone banking
You can use your bank or building society services to pay by Internet or telephone banking.
If you don't have access to Internet or telephone banking but wish to make a direct transfer by other means, your bank may accept telephone, fax or written instructions.
To make a payment you’ll need the account details given below and your Inheritance Tax reference number.
It normally takes three bank working days for payment to reach HMRC. Bank working days are Monday to Friday excluding bank holidays. Some bank and building societies can take longer. You should check with your bank or building society to see how long they take to transfer payment and what their cut off time is for initiating payment. If they take longer then you will need to initiate your payment earlier.
If your payment arrives late interest will be charged.
Providing HMRC bank account details
HMRC’s Inheritance Tax Office bank account processes all Inheritance Tax payments and you’ll need to provide your bank with their details as follows.
| HMRC office | Sort code | Account number | Account name |
|---|---|---|---|
| Inheritance Tax | 10 53 92 | 23430303 | CIR |
If your payment is made with the wrong sort code or account number there may be a delay before your account is credited or your payment may not be received at all.
Your Inheritance Tax reference number
When making an Inheritance Tax payment you will need your reference number (see the section ‘How do I get an Inheritance Tax reference number?’). The reference is made up of 11 or 12 characters and starts with a double letter ‘SS’ or ‘ST’, for example SS123456/08X or SST010446/08X.
It is important that you show the reference number with no gaps between the characters otherwise it could lead to delays in updating your records.
Paying Inheritance Tax by CHAPS transfer
The CHAPS system enables you to tell your bank to make an immediate payment which will reach HMRC on the same day provided you initiate payment within the time specified by your bank (usually between 9.00 am and 3.00 pm). Bank working days are Monday to Friday excluding bank holidays.
CHAPS payments are more expensive than other payment methods but may be of benefit if you’re making a large payment.
Providing HMRC bank account details
When using this system you will need to provide your bank or building society with HMRC’s bank account details.
| HMRC office | Sort code | Account number | Account name |
|---|---|---|---|
| Inheritance Tax | 10 53 92 | 23430303 | CIR |
If your payment is made with the wrong sort code or account number there may be a delay before your account is credited or your payment may not be received at all.
Your Inheritance Tax reference number
When making an Inheritance Tax payment you will need your reference number (see the section ‘How do I get an Inheritance Tax reference number?’). The reference is made up of 11 or 12 characters and starts with a double letter ‘SS’ or ‘ST’, for example SS123456/08X or SST010446/08X.
It is important that you show the reference number with no gaps between the characters otherwise it could lead to delays in updating your records.
Paying Inheritance Tax by Bank Giro
If your bank or building society offers the Bank Giro service you can make an Inheritance Tax payment at your own bank branch by cheque or cash. HMRC treats any payment made by Bank Giro as electronic.
You will need your Inheritance Tax reference number and payslip (see the section ‘How do I get an Inheritance Tax reference number?’).
If paying this way:
- take your payslip to your own bank branch (other banks may refuse to accept it or may charge you for this service)
- make your cheque payable to ‘HM Revenue & Customs only’ and write your Inheritance Tax reference after ‘HM Revenue & Customs only’
To allow for possible delays in bank processing (for which HMRC is not responsible) please allow at least three bank working days for your payment to reach them. Bank working days are Monday to Friday excluding bank holidays.
Apply for an Inheritance Tax reference number online
Paying Inheritance Tax by post
HMRC recommends that you make your Inheritance Tax payment electronically using one of the methods described elsewhere in this guide. Electronic payments are generally more efficient and secure, as long as you provide an accurate reference number.
However if paying by post please:
- include your Inheritance Tax reference number and payslip, if paying tax on an estate (or details of the trust if making a trust payment for the first time)
- make your cheque payable to ‘HM Revenue & Customs only’ followed by your Inheritance Tax reference number (if applicable) or give details of the trust (such as name of the settlement) on the back of your cheque
- do not fold the payslip or cheque and do not fasten them with paper clips or staples or in any other manner
Send to:
HM Revenue & Customs
Ferrers House PO Box 38
Castle Meadow Road
Nottingham NG2 1BB
DX Service:
DX701205
Nottingham 4
To allow for possible postal delays (for which HMRC is not responsible) please allow at least three working days for your payment to reach them.
Apply for an Inheritance Tax reference number online
Post-dated cheques
HMRC will only accept a post-dated cheque in the following circumstances:
- before your tax is due - where the cheque is for the full amount and they receive it by the due date and it’s dated on or before the due date
- after your tax is due - where you have a prior arrangement with your HMRC office to settle your liability with post-dated cheques
Because of the highly automated systems used for processing postal payments HMRC can only identify a post-dated cheque if there is a letter with it.
Paying Inheritance Tax from the deceased’s bank account (Direct Payment Scheme)
If you’re paying Inheritance Tax on an estate, you can pay some or all of the tax due by arranging to have money transferred from the deceased's bank or building society accounts directly to HMRC using the Inheritance Tax Direct Payment Scheme.
What you need to do
1. Contact the banks or building societies that you would like to transfer the money from and ask them what they need to see in order to grant you power as a ‘personal representative’ to arrange for the transfer - and how long the transfer will take once they have everything they need from you. To avoid delays later on, it is best to do this even before you apply for the grant of probate.
2. Apply to HMRC for an Inheritance Tax reference number (see the section ‘How do I get an Inheritance Tax reference number?’). You will need to put the reference number on the Direct Payment Scheme application form, so you will need to do this in good time too.
3. Fill in form IHT423 Direct Payment Scheme bank or building society account. You will need a separate form for each bank or building society that will be transferring funds.
4. Send form IHT423 to the banks and building societies and at the same time send form IHT 400 Inheritance Tax Account, form IHT421 Probate Summary (form C1 Confirmation in Scotland) and any supplementary pages or supporting documents to HMRC using the address details shown below.
| If you are based in England and Wales | If you are based in Scotland | If you are based in Northern Ireland |
|---|---|---|
| HM Revenue & Customs Ferrers House PO Box 38 Castle Meadow Road Nottingham NG2 1BB |
HM Revenue & Customs Meldrum House 15 Drumsheugh Gardens Edinburgh EH3 7UG |
HM Revenue & Customs Level 3, Dorchester House 52-58 Great Victoria Street Belfast BT2 7QL |
The bank or building society will transfer the money to HMRC.
Once HMRC receives notification of payment, the payment and your form IHT400 Inheritance Tax Account will be linked. If all is in order HMRC will stamp and return form IHT421 Probate Summary (or form C1 Confirmation in Scotland) to you.
Apply for an Inheritance Tax reference number online
Get form IHT422 Application for Inheritance Tax reference (PDF 39K)
Get form C1 to apply for confirmation in Scotland
How to pay Inheritance Tax using the deceased’s Government Stock
1. Write to the registrars for British Government Stock and let them know that you want to transfer funds from the British Government Stock to pay Inheritance Tax on the deceased’s estate, and how much you would like to transfer. You will also need to provide them with a copy of the death certificate. The registrars are:
Computershare Investor Services PLC
PO Box 2411
The Pavilions
Bridgwater Road
Bristol BS3 9WX
Tel: 0870 703 0143
Email: gilts@computershare.co.uk
Computershare may need the stock reference number to help them find a particular investment. This number appears on the stock certificate and on correspondence from the Bank of England. They aim to deal with requests within five working days.
2. Apply to HMRC for an Inheritance Tax reference number. You should
do this at least three weeks before you expect to make the payment.
HMRC will send you a reference number in the post. See the section ‘How
do I get an Inheritance Tax reference number?’.
3. When you get your reference number, you need to send HMRC:
- a letter quoting your reference number and stating how much of the tax you want to be paid out of the British Government Stock (use the relevant address shown below)
- form IHT400 Inheritance Tax Account
- form IHT421 Probate Summary (or C1 Confirmation in Scotland)
| If you are based in England and Wales | If you are based in Scotland | If you are based in Northern Ireland |
|---|---|---|
| HM Revenue & Customs Ferrers House PO Box 38 Castle Meadow Road Nottingham NG2 1BB |
HM Revenue & Customs Meldrum House 15 Drumsheugh Gardens Edinburgh EH3 7UG |
HM Revenue & Customs Level 3, Dorchester House 52-58 Great Victoria Street Belfast BT2 7QL |
When HMRC receives the letter and forms, it will contact Computershare and ask for the money to be transferred. This may take up to four weeks.
If the amount transferred is enough to cover the tax due, HMRC will take the following actions depending on who you are and where you live.
| Personal applicant applying for a grant in England, Wales or Northern Ireland | Practitioner applying for a grant in England, Wales or Northern Ireland | Applying for confirmation in Scotland |
|---|---|---|
| Send the receipted IHT421 direct to the Probate Registry so they can issue the grant | Send the receipted IHT421 to you so you can apply for a grant | Send the receipted C1 to you so that you can apply for confirmation from the sheriff clerk or commissary clerk |
Apply for an Inheritance Tax reference number online
Get form IHT422 Application for Inheritance Tax reference (PDF 39K)
Get form C1 to apply for confirmation in Scotland
How to pay Inheritance Tax using the deceased’s National Savings
1. If you have not already done so, contact the relevant National Savings & Investment office for the type of National Savings product the deceased had (see link below) and ask them to send you a letter stating:
- the value of the deceased's National Savings investments at the date of death
- the National Savings reference
This is what you will send to HMRC with your Inheritance Tax forms to pay any Inheritance Tax due.
2. Apply to HMRC for an Inheritance Tax reference number (see the section ‘How do I get an Inheritance Tax reference number?’). You should do this at least three weeks
before you expect to make the payment. HMRC will send you a reference number in the post.
3. When you get your reference number, you need to write to HMRC quoting your reference number, and enclosing:
- a letter detailing the National Savings investments to be used
- any official letters stating the value of those investments
- form IHT400 Inheritance Tax Account
- form IHT421 Probate Summary (or C1 Confirmation in Scotland)
Please do not send HMRC original passbooks or certificates.
| If you are based in England and Wales | If you are based in Scotland | If you are based in Northern Ireland |
|---|---|---|
| HM Revenue & Customs Ferrers House PO Box 38 Castle Meadow Road Nottingham NG2 1BB |
HM Revenue & Customs Meldrum House 15 Drumsheugh Gardens Edinburgh EH3 7UG |
HM Revenue & Customs Level 3, Dorchester House 52-58 Great Victoria Street Belfast BT2 7QL |
When HMRC receives the forms and letters, they will contact National Savings and ask for the money to be transferred. This may take up to four weeks.
If the amount transferred is enough to cover the tax due, HMRC will take the following actions depending on who you are and where you live.
| Personal applicant applying for a grant in England, Wales or Northern Ireland | Practitioner applying for a grant in England, Wales or Northern Ireland | Applying for confirmation in Scotland |
|---|---|---|
| Send the receipted IHT421 direct to the Probate Registry so they can issue the grant | Send the receipted IHT421 to you so you can apply for a grant | Send the receipted C1 to you so that you can apply for confirmation from the sheriff clerk or commissary clerk |
4. If the amount transferred is not enough to cover the tax due, HMRC will tell you how much you must pay and how to pay it.
Apply for an Inheritance Tax reference number online
Get form IHT422 Application for Inheritance Tax reference (PDF 39K)
Get form C1 to apply for confirmation in Scotland
Get details of National Savings contacts
Transferring National Heritage Property to the Crown
You can offer to pay some or all of the tax and interest for which you are liable by transferring National Heritage Property to the Crown - though offers are rarely accepted.
Please note that if Inheritance Tax is owed because of death, HMRC cannot accept property from you before you have obtained a grant of probate.
The rules are complicated. For further information, please contact HMRC’s Heritage Team:
HM Revenue & Customs
Ferrers House, PO Box 38
Castle Meadow Road
Nottingham
NG2 1BB
Tel: 0845 302 0900 (9.00 am to 5.00 pm, Monday to Friday excluding bank holidays)
Overseas Tel: +44 115 974 3009
Inheritance Tax payment correspondence or receipt requests
In order to minimise costs to all taxpayers HMRC does not automatically issue receipts for payments. If you have made your payment electronically using one of the methods described elsewhere in this guide you can confirm from your own bank or building society statement that payment has cleared your account.
However, if you are paying HMRC by post and you need to ask for a receipt, include a separate letter with your payment. HMRC cannot identify any instructions written on payslips as they are processed automatically.
If you wish to tell HMRC about a change (such as a new address) you will need to include a separate letter with your payment if paying by post, or write to them separately if you have made your payment electronically.
Postal address for correspondence
| If you are based in England and Wales | If you are based in Scotland | If you are based in Northern Ireland |
|---|---|---|
| HM Revenue & Customs Ferrers House PO Box 38 Castle Meadow Road Nottingham NG2 1BB |
HM Revenue & Customs Meldrum House 15 Drumsheugh Gardens Edinburgh EH3 7UG |
HM Revenue & Customs Level 3, Dorchester House 52-58 Great Victoria Street Belfast BT2 7QL |
Information about the Faster Payment service
HMRC is currently unable to receive or make payments using the Faster Payment service, which is offered by some banks.
For a bank’s customer to make a Faster Payment, both its bank and the payee’s bank must be members of the Faster Payment Scheme. The Bank of England, which is currently HMRC’s banking supplier, made a decision some time ago to withdraw from the provision of retail banking services to its customers (one of which is HMRC) and has not joined the Faster Payments Scheme.
HMRC is in the process of moving its business to a new banking supplier but services will not be available before mid 2009. By that time HMRC and the bank expect to have developed the necessary changes to their systems to enable Faster Payments to be made, received and processed effectively and efficiently.
Information about Direct Debit payments
HMRC has started work which will extend its ability to offer customers the option to pay by Direct Debit. This method will be made available to customers who already use certain HMRC filing services. Further details will be made available in early 2009.
More useful links
Find out more about Inheritance Tax
