Do I Need To Pay Inheritance Tax?

In the United Kingdom you will have to pay inheritance tax if the estate you are dealing with is
valued at £325,000 or more. This is the inheritance tax boundary for the year 2012/2013. In
general the executor of the Will is responsible for the paying the tax, however if you have been
gifted money/property by the deceased individual, or are a trustee of the Will you may have to
pay some inheritance tax in some circumstances. Inheritance tax will be paid following the
valuation of the estate and must be paid within 6 months of the end of the month in which the
deceased passed away.

Inheritance Tax Thresholds

Each United Kingdom resident has their own inheritance tax threshold of £325,000, after
which they will be subject to paying tax on their estate. However, if you are married or in a
civil partnership it is possible to transfer your partner's unused inheritance tax boundary. This
'nil band rate' transfer can mean the surviving spouse has an inheritance tax threshold of up to
£650,000 on their estate. The transfer can only occur on the death of the second spouse.
The second death must have occurred on or after 9th October 2007 otherwise it may not be possible
to transfer the full boundary. 

How Do I Pay Inheritance Tax?

Inheritance tax will be subject to interest if it is not paid in full in the six months
following the death of you loved one. So how do I pay inheritance tax? Firstly you must apply for
an inheritance tax number; you can apply for this online or via post using an IHT422 form. You
will need this number before you can make any payments and you should apply for it at least 3
weeks prior to making any payments. The HMRC recommends that you pay your inheritance tax
electronically via any of the following methods:-

1. Faster Payments Service (FPS)

2. Internet Banking

3. Telephone Banking

4. CHAPS 

5. Bank Giro

You can also pay your inheritance tax via cheque however this is not the recommended option. The
HMRC also will accept post dated cheques for tax if you have come to this agreement with them
directly or the cheque is post dated for a date prior to the deadline for payment and is for the
full amount due. 

In some cases, with certain assets it is possible to pay the inheritance tax in instalments over
ten years. This only applies to assets such as, shares, agricultural land and property, buildings
and businesses.


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For specialist inheritance tax click here advice
http://www.twpsolicitors.com/uk-inheritance-tax-planning-advice/

Thomson Wilson Pattinson are probate solicitors in Windermere. http://www.twpsolicitors.com/

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