In this section:
If you’re the executor or personal representative for the estate of someone who has died, you have six months from the end of the month in which they died to pay any Inheritance Tax due. After that, interest will be charged on the amount of tax outstanding.
On this page:
You have to pay interest from the day after the ‘due date’, which is exactly six months from the end of the month in which the person died. It doesn’t matter when in the month they died - the due date is worked out from the end of that month.
This table shows you how to work out the due date and the date when interest charges start.
Month of death |
Due date |
Interest starts from |
|---|---|---|
January |
31 July |
1 August |
February |
31 August |
1 September |
March |
30 September |
1 October |
April |
31 October |
1 November |
May |
30 November |
1 December |
June |
31 December |
1 January |
July |
31 January |
1 February |
August |
28/29 February |
1 March |
September |
31 March |
1 April |
October |
30 April |
1 May |
November |
31 May |
1 June |
December |
30 June |
1 July |
Interest rates change from time to time, you can follow the link below to see interest rates from October 1988 to date.
See a full list of interest rates going back to October 1988
Once you've filled in the forms and are getting ready to pay the tax, follow the steps below to work out how much interest is due:
Step one: work out how many days there are between the date interest started and the date you expect to pay the tax. You must include the day interest started and the day you intend to pay in your calculation (see the example below).
Step two: find out the interest rate for the period over which you have been unable to pay the Inheritance Tax in full.
Step three: multiply the tax due by the interest rate then by the number of days and divide the answer by 366 (tax due x the interest rate x the number of days ÷ 366 = interest due).
The death occurred on 10 December 2006, so the due date is 30 June 2007. A tax payment of £5,000 is made to HM Revenue & Customs (HMRC) on 10 November 2007.
Interest charges start on 1 July 2007 and finish on 10 November 2007, with an interest rate increase on 6 August 2007.
You work out the interest as follows:
So the total amount of interest to pay is £19.67 + £66.26 = £85.93
It can be complicated to work out the right amount of interest. If you need help, try the interest calculator or call the Probate and Inheritance Tax Helpline.
Work out the interest due with an interest calculator
Contact the Probate and Inheritance Tax Helpline
If you pay Inheritance Tax in annual instalments, the interest charges are worked out differently.
See our guide on interest when paying Inheritance Tax in instalments
Contact the Probate and Inheritance Tax Helpline
When Inheritance Tax is due - payment deadlines
