Advice with IHT please!
in Cutting tax
19 replies 355 views
in Cutting tax
With an estate that is largely tied up in shares,funds, S&S ISA etc, these are now effectively locked until probate is granted.
IHT, will be needed to be paid in order for probate to be granted and there are insufficient cash funds available to pay a direct payment from the deceased's account for the full amount that will due. I have looked at some of the specific products available to bridge the finance but the ones I like the look of (e.g Tower Street Finance) have quite high charges and additionally insist on the estate being handled "professionally" so I would also incur other significant costs. I have seen somewhere that a part payment to HMRC may be enough to get probate but nothing definitive. Can anyone offer any experiences or advice on this topic? Thanks
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Thanks, I have seen that. Am I right in thinking I could arrange this and make the first payment and then pay it off early once probate is granted?
In yearly instalments
You can pay your Inheritance Tax on things that may take time to sell in equal annual instalments over 10 years.
You must say on Inheritance Tax Account form IHT400 if you want to pay in instalments.
You’ll usually have to pay interest on your instalments. Use the calculator to work out the interest you’ll need to pay.
You must pay the tax in full when you’ve sold the deceased’s assets, such as their house or shares.
It must be quite unusual for an estate in IHT territory to not contain a house or reasonable amount of cash.
Which company is providing advice, and which platform are the funds held on?
"Upon notification of your death we will continue to deduct all our normal charges and all pending and scheduled instructions will be cancelled. The value of your account may form part of your estate for inheritance tax purposes and once a ‘grant of representation’ has been issued we will accept instructions from your legal representatives. Your account will remain invested in assets until we receive instructions to sell them."