In this section:
- Paying Inheritance Tax from the deceased's bank account
- Paying Inheritance Tax using the deceased's Government Stock
- Paying Inheritance Tax using the deceased's National Savings
- Paying Inheritance Tax from your own funds or a joint account
- Paying Inheritance Tax by transferring heritage property
Paying Inheritance Tax by transferring heritage property
In exceptional cases, you can offer to pay some or all of the Inheritance Tax an estate owes by transferring National Heritage property to the Crown, but this is rare.
On this page:
- What is National Heritage property?
- What are the conditions for transferring National Heritage property?
- More help?
- More useful links
What is National Heritage property?
The main kinds of asset that qualify as National Heritage property are:
- buildings of outstanding historic or architectural interest
- land that’s needed to protect the character and amenities of these buildings
- land, including buildings, of outstanding scenic, historic or scientific interest
- pictures, prints, books, manuscripts and other works of art of significant national, historic or artistic interest
- scientific collections or other items not yielding income, of important national, historic, artistic or scientific interest
For property other than land or buildings, the key test is whether the property would make a significant or important addition to a national, local or university collection or whether it is significant in association with a particular building.
What are the conditions for transferring National Heritage property?
You can offer to pay some or all of the Inheritance Tax and interest you owe by transferring National Heritage property to the Crown, but offers are rarely accepted. The rules are complex, and each item is dealt with on a case-by-case basis.
In the rare cases where your offer is accepted, you must first pay all of the Inheritance Tax due through any of the usual means and get the grant of probate (or confirmation in Scotland). Only after this can you transfer the asset.
After you've transferred the asset, HM Revenue & Customs (HMRC) will repay the Inheritance Tax you've paid. If the asset is worth more than the tax you owe, HMRC will also pay you the difference.
You should contact the HMRC Heritage team to discuss the matter. You can write to them at:
HM Revenue & Customs
Ferrers House, PO Box 38
Castle Meadow Road
Nottingham
NG2 1BB
More help?
Contact the Probate and Inheritance Tax Helpline
More useful links
See other ways to fund an Inheritance Tax payment
