In the Spring Budget 2024 the government announced that from 1 April 2024 personal representatives (PRs) of a deceased estate may apply to HMRC to waive the normal requirement that inheritance tax (IHT) must be paid before a grant of representation (including grants of probate and other types) can be issued.
Previously a ‘grant on credit’ was only possible where PRs have applied for but failed to obtain commercial borrowing – this restriction has been removed.
When will this be helpful?
Lack of liquid funds is a common problem for PRs. Historically PRs needed to pay all IHT due before any grant could be issued or resealed in the UK (Senior Court Act 1981 s 109). A limited exception applies to IHT arising on land and buildings or unlisted shareholdings where PRs may pay IHT by ten annual instalments...
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