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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Assessing: calculations: recapture charges: next action

Once you have established the tax charge you can

  • apportion any tax attributable to Instalment Option Property (IOP) (IHTM31012).
  • calculate the interest charge (IHTM31511)
  • apply any deposits (IHTM31560)


Instalments are only available on recapture charges for property that qualifies for woodlands relief that is disposed of, but not sold.

Prepare separate tax calculations for Non Instalment Option Property (NIOP) (IHTM31012) and IOP.

If the property is unsold, break down the IOP tax charge into 10 annual instalments as you would in a death estate (IHTM31418).

Follow the instructions for calculating interest in IOP cases (IHTM31517).