You must get an Inheritance Tax reference number before you can pay Inheritance Tax.

You can apply for one:

• online unless you need it for a trust
• by post - the address you need is on the form

Download 'Form IH422, apply for an Inheritance Tax reference' (PDF, 150KB)

You must apply for an Inheritance Tax reference number at least 3 weeks before you want to make a payment.

Making ‘payments on account’

It may take you some time to finalise the financial affairs of the person who has died. You can make early Inheritance Tax payments before you know the exact amount the estate owes - these are called ‘payments on account’.

If you do, HM Revenue & Customs (HMRC) may pay interest on these payments.

You'll need your Inheritance Tax reference number to pay Inheritance Tax.

It’s your responsibility to make sure payments reach HM Revenue and Customs (HMRC) on time. Check your bank’s transaction limits and processing times.

Online and telephone banking or CHAPS

Use HMRC’s bank details and your Inheritance Tax reference number as the payment reference.

Overseas accounts

If asked for the IBAN, you must also give the BIC.

HMRC’s banking address is Citi, Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB.

Your bank or building society

Use your payslip to pay at your own bank by cash or cheque made payable to ‘HM Revenue & Customs only’ followed by your Inheritance Tax reference number. Allow 3 working days for payments to reach HMRC.

Post

Include your payslip and cheque made payable to ‘HM Revenue & Customs only’ followed by your Inheritance Tax reference number. Allow 3 working days for the payment to reach HMRC.

If you’re paying Inheritance Tax on a trust for the first time, include the trust’s details on a separate note.

HM Revenue & Customs
St Mungo's Road
Cumbernauld
Glasgow
G70 5WY

Don’t fold your payslip or cheque or fasten them together. You can only send a postdated cheque if you have HMRC’s permission.

You can ask banks or building societies to pay funds from accounts in the estate straight to HM Revenue & Customs (HMRC). This is called the ‘Direct Payment Scheme’.

1. Ask the bank or building society to make you a 'personal representative' - you can do this before you apply for probate (confirmation in Scotland).

2. Get your Inheritance Tax reference number.

3. Send form IHT423 to each bank or building society you want to pay HMRC.

4. Send the main Inheritance Tax form IHT 400, form IHT421 'Probate Summary' (form C1 'Confirmation' in Scotland) and any supplementary pages or supporting documents to HMRC.

Download 'Form IHT423' (PDF, 100KB)

HM Revenue & Customs
Ferrers House
PO Box 38
Castle Meadow Road
Nottingham
NG2 1BB

HMRC will stamp and return to you form IHT421 ‘Probate Summary’ (or form C1 ‘Confirmation’ in Scotland).

You can ask National Savings and Investments (NS&I) to pay the value of any of their products that are part of the estate straight to HM Revenue & Customs (HMRC).

This method is not recommended if you need confirmation or probate quickly.

Call NS&I and ask them to send you a withdrawal form and letter showing:

• the value of the deceased’s NS&I savings and investments at the date of death
• their National Savings reference

National Savings and Investments
0500 007 007
7 days a week, 7am to midnight
Find out about call charges

When you’ve got the withdrawal form and valuation letter

Send your completed withdrawal form back to NS&I.

At the same time, write to HMRC enclosing:

• a letter saying which NS&I products will be used to pay Inheritance Tax and how much you want to pay
• the valuation letter from NS&I or other official documents that show the value
• the main Inheritance Tax form IHT400
• form IHT421 ‘Probate Summary’ (or C1 ‘Confirmation’ in Scotland)

Don't send HMRC original passbooks or certificates.

HM Revenue & Customs
Ferrers House
PO Box 38
Castle Meadow Road
Nottingham
NG2 1BB

Write to Computershare Investor Services, who operate the British government stock scheme.

Tell them you want to pay Inheritance Tax and how much of the stock you want to use. Enclose a copy of the death certificate and the stock reference number (if you have it). They aim to deal with requests within 5 working days.

It takes up to 4 weeks for the stocks to be transferred. This method is not recommended if you need confirmation or probate quickly.

Computershare Investor Services PLC
PO Box 2411
The Pavilions
Bridgwater Road
Bristol BS99 6WX

Computershare Investor Services PLC
gilts@computershare.co.uk
Telephone: 0870 703 0143
Find out about call charges

Send HMRC:

• a letter saying how much tax you want to be paid out of the stock
• the main Inheritance Tax form IHT400
• form IHT421 ‘Probate Summary’ (or C1 ‘Confirmation in Scotland’)

HM Revenue & Customs
Ferrers House
PO Box 38
Castle Meadow Road
Nottingham
NG2 1BB

Applying in England, Wales or Northern Ireland

HMRC will mark the IHT421 form as ‘receipted’ and send it to the Probate Registry so they can issue the grant (if you’re handling probate yourself). If you’re using a solicitor, HMRC will send the form to them.

Applying for confirmation in Scotland

HMRC will mark the C1 ‘Confirmation’ form as ‘receipted’ and send it to you so you can apply for confirmation from the sheriff clerk or commissary clerk.

You can pay in instalments over 10 years on things that may take time to sell if you’ve said you want to on the IHT400 Inheritance Tax form.

You pay 10% per year. The deadline for the first payment is the end of the sixth month after the death.

There will be interest to pay on instalments.

You must pay the tax in full when the assets are sold.

Deadlines

The first instalment is due at the end of the month 6 months after the death. The second instalment is due 12 months after that, etc.

What you can pay in instalments on

Buildings

For example, the deceased's house.

Gifts

If the deceased gave you something and there’s still Inheritance Tax to pay on it, you can pay in instalments. If the gift was an unlisted share or security, it must still have been unlisted at the time of the death.

Shares and securities

You can pay in instalments if the shares or securities allowed the deceased to control more than 50% of a company's voting powers.

You can also pay in instalments for 'unlisted' shares or securities (ie they’re not traded on a recognised stock exchange) in any of the following cases:

• they’re worth more than £20,000 and represent at least 10% of the 'nominal' value of the company’s share capital (sometimes called the face value), or at least 10% of the nominal value of the company’s ordinary share capital if they are ‘ordinary shares’
• at least 20% of what’s owed is on assets that qualify for payment by instalments
• you’re able to show that the Inheritance Tax on the shares or securities could not be paid in 1 lump sum without causing significant difficulties

Business run for profit

You can pay in instalments on the net value of a business (but not the business’ assets).

Agricultural land and property

This is rare because most agricultural land and property is exempt from Inheritance Tax.