Paying Inheritance Tax from the deceased's bank account

If there’s enough money in the deceased’s bank or building society accounts to pay the Inheritance Tax due, you may be able to use the Direct Payment Scheme to transfer the money direct from the deceased’s account to HM Revenue & Customs (HMRC).

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The Direct Payment Scheme

Not all banks and building societies take part in the Direct Payment Scheme, so check with them first. Also, you can only use the Direct Payment Scheme if the accounts are in the sole name of the person who died. You can’t use it with joint accounts.
If the person who died had more than one account and there is an overdraft on one of them, the bank may want this to be repaid before making a transfer.
It can take up to four weeks for the money to be transferred to HMRC, so this is not the best method to use if the grant of probate (or confirmation in Scotland) is needed urgently.

Inheritance Tax due dates

Find out how interest is charged on Inheritance Tax paid after the due date

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What does it cost?

You should ask the bank or building society if they will charge a fee for making the transfer. For example, there may be a fee to pay on loss of interest if the account normally requires a notice period before making a withdrawal.

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Arranging a Direct Payment?

You should get in touch with the bank or building society as soon as possible to find out if they take part in the Direct Payment Scheme, and what they need from you in order to arrange the transfer. You’ll also need to prove that you'll be the executor or personal representative of the deceased's estate.

How to pay Inheritance Tax using the Direct Payment Scheme

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More help?

Contact the Probate and Inheritance Tax Helpline

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More useful links

Ways to fund an Inheritance Tax payment

How to value the estate of someone who has died

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