Loans to pay IHT
Access up to 50% of your
inheritance or estate value
before Probate has been granted to pay off your Inheritance tax
Loans to pay Inheritance Tax
Access up to 50% of your inheritance or estate value before Probate has been granted to pay off your Inheritance tax
What is a Loan to pay IHT?
A loan to pay IHT can offer an important injection of cash to pay off your pressing Inheritance tax bill.
With Provira’s Estate Advance Loan, you can access up to 50% of your Inheritance in just a few days, helping you pay your IHT in part or in full – and avoid any penalties or added interest.
When someone passes away, the HMRC requires Inheritance tax to be paid after just 6 months. But if you are undergoing a typical probate process, it can take up to 12 months or longer before you have access to estate funds. Hence, you may find yourself stuck with a large inheritance tax bill – and if you do not have the cash available, you might look for a loan to help pay your IHT during a challenging time for the family.
At Provira, we want to help families avoid high-cost loans or be penalised for late Inheritance Tax payments.
We can help you pay your Inheritance Tax with an immediate advance, allowing you and your family to move forward.
Start your application by using our short form online or calling us on 0203 813 6400. We aim to provide a decision within 24-48 hours and successful applicants are often funded within a matter of days.
How it works
Efficient solutions at speed
Provira enables you to access up to 50% of the value of the estate within 3 days of application.
Simple and straight-forward pricing
We only charge simple interest (not compound interest) so costs are fixed and transparent and you are not paying interest on the interest. We are FCA regulated.
Confidence in the process
We work directly with solicitors and pay HMRC Inheritance Tax directly. There is no personal guarantee required, no monthly repayments and no early repayment fees.
What is IHT?
When someone dies, inheritance tax (IHT) of 40% is due if their Estate is worth more than £325,000 (nil rate band). An additional £175,000 is available tax-free if the deceased has passed on their primary residence to their children (residence nil rate band).
When you combine both the nil rate band and the residence nil rate band, it means that there is a tax-free threshold of £500,000 and this doubles to £1 million if it is a couple or both parents.
A tax of 40% is due for any amount left over and importantly, this tax must be paid to HMRC in order for the Inheritance to be available to Beneficiaries, leaving many families in a difficult position where they have huge sums of tax to repay.
Read Moneer’s story where he faced this predicament and Provira was able to help.
Read more about inheritance tax thresholds.
What is the deadline to pay IHT?
You must pay Inheritance Tax after 6 months of the person dying, officially by the end of the sixth month.
For many UK families, this is not enough time to come up with the necessary funds, especially if it is a very high bill – and this is where a loan to pay IHT can help.
If you do not pay the amount by the deadline, you may incur penalty fees and added interest.
Are your Loans just to pay IHT or can they be used for other things?
Yes, you can use our Estate Advance Loan to pay any other estate expenses such as a Probate lawyer, legal fees, funeral costs and tax accountants.
You can also look at our Inheritance Advance loan product, which allows you to release your Inheritance early. Since this is your money, it can be used for any purpose you like.
What are the terms of a Loan to pay IHT with Provira?
Arrangement fee – An arrangement fee of 1 – 2% applies.
Monthly fee – A monthly fee of 1.5%-2% is charged and rolled up until the end of the loan term.
Paid directly from the estate – All repayments are collected at the end of the loan term directly from the estate. You do not need to make monthly repayments via direct debit or manual repayments, the loan is repaid when the estate is settled.
Underwritten against the estate – The loan amount and eligibility is underwritten against the net value and assets of the estate, therefore your income, job status or personal credit rating are not considered in the decision.
No personal liability for the loan – If the estate is overvalued or inheritance is less than expected and there is no breach of loan agreement, you will not pay the shortfall.
14-day cooling off period – You have the right to withdraw your loan with no interest charged in the first 14 days.
No early repayment fee – No early repayment or exit fees are charged by Provira.
Get your Advance in these 4 simple steps
1
2
Send us your documents
We confirm your eligibility and send you a list of the documents we’ll require, including:
- Copy of Death Certificate
- Copy of Will (if applicable)
- Copy of Grant of Probate/Confirmation/Letters of
Administration (if applicable) - Confirmation of the assets and liabilities within the estate
- Proof of ID, address and bank details
We confirm your eligibility and send you a list of the documents we’ll require, including:
Show list
- Copy of Death Certificate
- Copy of Will (if applicable)
- Copy of Grant of Probate/Confirmation/Letters of
Administration (if applicable) - Confirmation of the assets and liabilities within the estate
- Proof of ID, address and bank details
3
Your application is assessed
Our experienced underwriters assess your application within 48 hours and successful applications receive a formal email offer.
4
Receive your funds
Ready to get started?
Other things to know
- There are no monthly repayments and no early repayment fees.
- The Advance is normally repaid in full when your inheritance is received.
- When the estate is settled the loan is repaid to us, normally by the Estate Administrator or the professional firm responsible for the sale of a property within the estate.
- If it turns out that your inheritance is less than expected, then as long as you have kept to the terms of the agreement, you will not be required to pay the shortfall should there be one.
From out of a hole towards hope – how Moneer was able to move forward with his life
Representative example
An Advance of £50,000 with an Arrangement Fee of 2% (£1,000) and an Interest rate of 24% (fixed). Interest is calculated on the advance and the fee and accrues daily.
*representative 26.5% APR.
What are the fees for a Loan to pay IHT?
The Arrangement Fee (which is simply added to the loan) is 1-2% of the loan amount. The interest rate is 1.5-2% per month for as long as the Advance is outstanding.
We only charge simple interest rather than compound interest. This means you are not paying interest on the interest. In the example above, this would result in a saving of £1,440 compared to all other providers with the same rates and fees that do charge compound interest.
What are the fees for an Estate Advance?
The Arrangement Fee (which is simply added to the loan) is 1-2% of the loan amount. The interest rate is 1.5-2% per month for as long as the Advance is outstanding.
Crucially, we only charge simple interest rather than compound interest. This means you are not paying interest on the interest. In the example above, this would result in a saving of £1,440 compared to all other providers with the same rates and fees that do charge compound interest.
We’re here to help
It’s important to us that you have all the information you need to move forward with hope.
or call us on 0203 813 6400
FAQ's
A bridging loan is a common term for an Inheritance Advance/Inheritance Loan or an Estate Advance/ Estate Loan. Both offer you access to immediate funds to help you bridge the Probate period.
An Inheritance Loan (or inheritance advance) is an advance on outstanding inheritance where the funds can be used for any purpose, and an Estate Advance offers an advance of net assets in the estate to pay for estate liabilities, repairs or renovations or to pay Inheritance Tax.
Yes, you can speak to the HMRC who may offer a payment plan in certain circumstances. This is not guaranteed and they charge added interest. We are happy to lend what you need to just pay the first installment so that you are not paying unnecessary interest and Probate can be granted.
We can typically approve loans within 48 hours provided that we receive all the relevant information and documentation. We aim to successfully fund approved loans within a matter of days.
No, we do not take personal security against your own home, our claim is in the overall value and assets of the estate – so we could have a claim on this if the loan is not resolved.
No, the decision will be based on the assessment and value of the Estate. Therefore, your employment information is not relevant.
No, your loan eligibility is based and underwritten on the net value and assets within the Estate - and your personal credit rating is not considered in the application.
The loan is repaid when the assets in the estate are liquidated. There are no monthly repayments for you to make manually or via direct debit, since this is all rolled up and paid off when the estate has been settled.
Provira’s founding team and investors are experienced financial professionals, having successfully launched and invested in many innovative specialty finance businesses. We are passionate about building disruptive businesses that focus on benefiting the consumer. We’ve worked for and with some of the largest and most reputable financial institutions globally.