IHTM28002 - Liabilities: general background on deducting liabilities

The general rule is that we allow a deduction for debts that the deceased actually owed at the date of death.

A debt for Inheritance Tax purposes is one that can be legally enforced (IHTM28383) and is either:

• imposed by law, or
• a debt for which consideration (IHTM28382) was received.

More details on the legal background to deducting liabilities can be found at IHTM28381.