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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Instalment option: introduction

Payment of tax by instalments is allowed, as an exception to the general rules (IHTM30140) for the payment of tax, in the circumstances specified in IHTA84/S 227 to 229. IHTA84/S229 is a very limited and self-contained provision relating to woodlands (IHTM30300) and is dealt with separately. The broad effect of IHTA84/S227 and IHTA84/S228 is that:

  • on a chargeable transfer made on death and in limited circumstances on other occasions of charge
  • the tax attributable to the value of specified qualifying property (which is not exactly the same on all occasions of charge)
  • may be paid by ten equal annual instalments (IHTM30201)
  • if the person paying the tax gives notice in writing (IHTM30202)
  • but the right to pay by instalments ceases on sale of the qualifying property (IHTM30321).IHTA84/S227 and IHTA84/S228 are supplemented by IHTA84/S234 which provides some interest relief (

IHTM30363) for instalments of tax on certain categories of qualifying property.