IHT instalment overpayment

Robinette

We paid the first instalment due on 1 October 2024 before we received probate.

Having collected all the money owing to the estate, we can now pay an additional £50k; however, there is a lot of conflicting information online - and from HMRC - as to how this overpayment would be allocated. 

Can anyone confirm if and how making an overpayment would be advantageous? Specifically, I know it wouldn't reduce the amount of the instalments, but would the overpayment cover the next instalment and reduce the amount of interest charged on the balance if we had been unable to sell the family home by then?

Thanks in advance.  

Keep_pedalling

You will still need to make the annual payment if you have not managed to release enough cash to pay the whole thing off. It will however reduce the amount of interest you will have to pay. 

Robinette

Keep_pedalling said:

You will still need to make the annual payment if you have not managed to release enough cash to pay the whole thing off. It will however reduce the amount of interest you will have to pay. 

Thanks, this is what I was concerned about. Better keep hold of the funds just in case.