In this section:

Interest rates for Inheritance Tax

Interest rates change from time to time along with market rates. The following table shows interest periods and rates since October 1988. You can use this to work out how much interest is due on an Inheritance Tax payment.

If you pay too much Inheritance Tax in advance HMRC will refund any excess money to you plus interest on the amount you've overpaid. This rate of interest is displayed in the Interest on repayments column below.

Interest period Interest rate (%) Interest on repayments (%) Days
29 Sept 2009 to present day 3% 0.5% -
24 March 2009 to 28 Sept 2009 0% 0% 189
27 Jan 2009 to 23 March 2009 1% 1% 56
6 Jan 2009 to 26 Jan 2009 2% 2% 21
6 Nov 2008 to 5 Jan 2009 3% 3% 61
6 Jan 2008 to 5 Nov 2008 4% 4% 304
6 August 2007 to 5 Jan 2008 5% 5% 153
6 Sept 2006 to 5 August 2007 4% 4% 334
6 Sept 2005 to 5 Sept 2006 3% 3% 365
6 Sept 2004 to 5 Sept 2005 4% 4% 365
6 Dec 2003 to 5 Sept 2004 3% 3% 275
6 August 2003 to 5 Dec 2003 2% 2% 122
6 Nov 2001 to 5 August 2003 3% 3% 638
6 May 2001 to 5 Nov 2001 4% 4% 184
6 Feb 2000 to 5 May 2001 5% 5% 455
6 March 1999 to 5 Feb 2000 4% 4% 337
6 Oct 1994 to 5 March 1999 5% 5% 1612
6 Jan 1994 to 5 Oct 1994 4% 4% 273
6 Dec 1992 to 5 Jan 1994 5% 5% 396
6 Nov 1992 to 5 Dec 1992 6% 6% 30
6 July 1991 to 5 Nov 1992 8% 8% 489
6 May 1991 to 5 July 1991 9% 9% 61
6 March 1991 to 5 May 1991 10% 10% 61
6 July 1989 to 5 March 1991 11% 11% 608
6 Oct 1988 to 5 July 1989 9% 9% 273

More useful links

Find out more about Inheritance Tax

When and how interest is charged on Inheritance Tax

How to calculate interest when Inheritance Tax is paid in instalments