IHT pay by installments calculation

bikeman

Keep_pedalling said:

bikeman said:

Keep_pedalling said:

10% is the minimum you need to pay for the first instalment.

I need to know how this is calculated. I have taken 10% of the full IHT due but I dont think this is right.

Why do you think that?

you can always pay more if you can which will reduce interest charges. 

Because I understood the IHT on everything except the house was due before the grant. I need to know how to apportion the £500k nil rate across the house vs everything else. There is no cash. So I need to know what must be paid immediately and what can be paid by installments, so I can get the minimum bridging loan required. 

Keep_pedalling

bikeman said:

Keep_pedalling said:

bikeman said:

Keep_pedalling said:

10% is the minimum you need to pay for the first instalment.

I need to know how this is calculated. I have taken 10% of the full IHT due but I dont think this is right.

Why do you think that?

you can always pay more if you can which will reduce interest charges. 

Because I understood the IHT on everything except the house was due before the grant. I need to know how to apportion the £500k nil rate across the house vs everything else. There is no cash. So I need to know what must be paid immediately and what can be paid by installments, so I can get the minimum bridging loan required. 

OKI understand where you are coming from now, but It is not just houses that can be paid by instalment it is any illiquid asset including stocks and shares. 

https://www.gov.uk/paying-inheritance-tax/yearly-instalments#:~:text=You%20can%20pay%20your%20Inheritance,you'll%20need%20to%20pay.

bikeman

Keep_pedalling said:

bikeman said:

Keep_pedalling said:

bikeman said:

Keep_pedalling said:

10% is the minimum you need to pay for the first instalment.

I need to know how this is calculated. I have taken 10% of the full IHT due but I dont think this is right.

Why do you think that?

you can always pay more if you can which will reduce interest charges. 

Because I understood the IHT on everything except the house was due before the grant. I need to know how to apportion the £500k nil rate across the house vs everything else. There is no cash. So I need to know what must be paid immediately and what can be paid by installments, so I can get the minimum bridging loan required. 

OKI understand where you are coming from now, but It is not just houses that can be paid by instalment it is any illiquid asset including stocks and shares. 

https://www.gov.uk/paying-inheritance-tax/yearly-instalments#:~:text=You%20can%20pay%20your%20Inheritance,you'll%20need%20to%20pay.

Actually, investment in shares cannot be paid by installments unless they are unlisted shares or the deceased contrtolled more than 50% of the company.Neither is the case.

Either way I seem to know more about this than you. I have repeatedly asked for help with the calculation and all you've done is misunderstand and waste my time. Please leave the replies to someone who knows something about this. Thank you.

Mands

Either way I seem to know more about this than you. I have repeatedly asked for help with the calculation and all you've done is misunderstand and waste my time. Please leave the replies to someone who knows something about this. Thank you.

Hang on, I think I'm duty caretaker this month. Just give me a minute to find the storeroom keys so I can bring out all the spare chairs for folks to sit on while they queue up to help you.

Oh, wait ... 

mybestattempt

bikeman said:

Keep_pedalling said:

bikeman said:

Keep_pedalling said:

bikeman said:

Keep_pedalling said:

10% is the minimum you need to pay for the first instalment.

I need to know how this is calculated. I have taken 10% of the full IHT due but I dont think this is right.

Why do you think that?

you can always pay more if you can which will reduce interest charges. 

Because I understood the IHT on everything except the house was due before the grant. I need to know how to apportion the £500k nil rate across the house vs everything else. There is no cash. So I need to know what must be paid immediately and what can be paid by installments, so I can get the minimum bridging loan required. 

OKI understand where you are coming from now, but It is not just houses that can be paid by instalment it is any illiquid asset including stocks and shares. 

https://www.gov.uk/paying-inheritance-tax/yearly-instalments#:~:text=You%20can%20pay%20your%20Inheritance,you'll%20need%20to%20pay.

Actually, investment in shares cannot be paid by installments unless they are unlisted shares or the deceased contrtolled more than 50% of the company.Neither is the case.

Either way I seem to know more about this than you. I have repeatedly asked for help with the calculation and all you've done is misunderstand and waste my time. Please leave the replies to someone who knows something about this. Thank you.

The answer depends on what part of the IHT liability is attributable to the value of the property:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm30311

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm30313


In this case I calculate the tax attributable to the value of the property to be:

£545000/£985000 x £194000 = £107340 payable in 10 instalments of £10734 each.

The tax attributable to the shares is £440000/£585000 x £194000 = £86660 payable in full.

So the tax due on submission of the IHT400 is £ 97394 (£10734+£86660)

The remaining instalments for house are £10734 x 9 = £96606

I may of course be wrong, I'm happy to be corrected.

bikeman

@mybestattempt at last an answer, yes that seems to be correct. Thank you.

I actually got there myself by using the IHT400Calc form, which took a while to discover
IHT400Calc_0223.pdf (publishing.service.gov.uk)