Grants on credit: what information do we need from the Personal Representative?
If it is not possible to settle all or any of the tax liability then we will consider whether a grant on credit or a partial grant on credit is appropriate in the circumstances. The Personal Representative (PR) will need to:
- Send us a signed and completed form IHT400, if they have not already done so.
- State the maximum amount of tax they can raise.
- Provide a statement explaining what steps the PRs and advisors have taken so far to fund the tax liability. This should include confirmation that all the sources of funding mentioned at IHTM05124 have been pursued or, if that is not the case, an explanation why not. It should also include details of the banks and financial institutions they have approached for funding.
- Provide copies of correspondence with banks or other financial institutions that have refused to provide funding or have attached conditions or charges that are far greater than is customary or normal in the current borrowing conditions.
Obtaining finance from banks and building societies may require some perseverance as not all local branches are familiar with the situation faced by PRs. We may want evidence that the PRs have actively pursued the matter and not simply given up at the first refusal.