Timing of paying Inheritance Tax on simple IHT400 calculation

Daffylad

Hi first time post wonder if anyone can help. Dealing with a close relative's IHT account which is relatively simple. He has property & savings and his gifts in last 7 years are relatively small. I've nearly completed IHT400 and believe the simple IHT calculation is applicable. I can't fathom out from the notes when exactly you pay the tax. Is it at the same time you send the IHT forms by post to HMRC or do you await a response from them accepting the calculation. At the moment I'm well within the 6 month timescale but want probate completed as quickly as possible to sell a retirement flat that he lived in. First time I've ever completed an IHT account so appreciate any help on this.

Keep_pedalling

If the estate has sufficient liquid assets to pay the full amount, I would pay it now.

You may have to submit an adjusted amount if the retirement flat sells for more or less than your estimate. The latter is more likely as they are usually difficult to sell. 

Daffylad

Keep_pedalling said:

If the estate has sufficient liquid assets to pay the full amount, I would pay it now.

You may have to submit an adjusted amount if the retirement flat sells for more or less than your estimate. The latter is more likely as they are usually difficult to sell. 

Many thanks appreciate the prompt answer and as I thought, pay sooner rather than later.

Just one more point if you know - does HMRC care where the money comes from so long as they get it? We have a buyer for the retirement flat so want to process this as quickly as possible and not wait for the sale to go through.

Keep_pedalling

No they don’t worry about the source of the payment.

Daffylad

Keep_pedalling said:

No they don’t worry about the source of the payment.

Many thanks Keep_pedalling I appreciate your knowledge and understanding on this matter