Instalment option: woodlands
Where woodlands have been left out of account on a transfer on death under IHTA84/S125 and a IHTA84/S126 charge arises in connection with a subsequent chargeable transfer, IHTA84/S229 allows the tax chargeable on that chargeable transfer to be paid by ten equal yearly instalments. A written notice of election is required.
The first instalment is payable six months after the end of the month in which the transfer is made.
The instalments are interest free (IHTM30363) in the sense that interest is charged only from the date at which each instalment is payable.
Where instalments are payable under IHTA84/S229, the unpaid tax does not become immediately payable when the timber is sold (IHTA84/S227 does not apply).