HMRC internal manual

Inheritance Tax Manual

Tax payable on taking out of grant: non-instalment option property

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

Before the personal representatives (IHTM05012) can obtain a grant (IHTM05011) they must pay all the tax due for which they are liable, except for the tax on any assets they have elected to pay by instalments (IHTM30191). Broadly speaking this includes all the tax due on the assets included in column A of the IHT400 plus the tax due on any joint property passing by survivorship and foreign property that does not qualify for instalments.  This is collectively known as the ‘non-instalment option property’. If they have not elected to pay tax by instalments it will also include the tax due on the assets in column B of the IHT400.

If they elected to pay part of the tax due by instalments and more than six months has passed since the end of the month in which the death occurred, the personal representatives must pay any instalments of tax and interest that have fallen due on the instalment option property in column B.

Personal representatives will need to follow the instructions set out in the form IHT400 or the IHT400 Calculation provided with the IHT400 to calculate the tax payable on delivery of the account. If they want us to calculate the tax we will do it for them.

The trustees of any settled property (IHTM16050) can also pay any tax due on the non-instalment option property in the settlement before the grant is obtained. If they do not wish to do so the tax must be paid by the appropriate due date (IHTM30151).