If you can’t pay your Inheritance Tax (IHT) bill by the deadline, HMRC will start charging interest on the outstanding amount from the due date. This is usually six months after the person’s death. 

Often, Inheritance Tax is due before probate is granted, which can cause a lot of stress for executors. 

And as house prices rise, more families across the country find themselves dealing with this issue. According to HMRC, over £8.2 billion was collected in IHT in the 2024 – 25 tax year, which was the highest amount ever recorded. Despite this, many executors still find themselves unprepared for how and when payment is due.

So, how can executors tackle this?

At Provira, we understand that dealing with a loved one’s estate is already emotional and exhausting. But when an Inheritance Tax bill arrives before the estate has the cash to pay for it, understandably it can feel very overwhelming.

For executors facing a looming Inheritance Tax bill, the good news is you’re not alone – there is another option. And Provira offers an Estate Advance to help families and executors who are struggling to pay an Inheritance Tax bill.

This advance allows executors to immediately access up to 50% of the net assets within an estate and is specifically designed to pay Inheritance Tax.  

To find out more about our Estate Advance, speak to the team today.

When is Inheritance Tax due?

Inheritance Tax must be paid by the end of the sixth month after the person’s death. For example, if someone dies in January, the tax is due by the end of July. 

It is usually the responsibility of the executor or personal representative of the estate to make sure that the payment is made on time.

If the deadline is missed, interest starts to build immediately on the unpaid balance. HMRC charges daily interest, which can quickly add up if the estate is complicated or there are unforeseen delays.

What if the estate has no cash to pay the Inheritance Tax?

Having no cash in the estate is a common issue, especially when most of the estate’s value is tied up in property. 

If there is no cash in the estate, the following might happen:

1. HMRC may allow payments in instalments

Executors can sometimes pay the IHT on certain assets (mainly property and shares) over ten years. However, interest is still charged on the unpaid amount, and this option doesn’t apply to every type of asset.

2. Executors may need to sell assets to pay the tax

Executors might look to release cash by selling assets. But here’s the problem: probate normally needs to be granted before anything can be sold, but IHT often needs to be paid before probate is issued.

Can assets be sold before the Inheritance Tax is paid?

Yes, but only in some cases. In most situations, HMRC will not grant probate, which gives the executor legal authority to sell assets in the estate, until some or all of the Inheritance Tax is paid. This creates a tricky situation where executors cannot sell assets without probate but need funds from those assets to pay the tax.

To resolve this, HMRC offers something called the “grant on credit”, which allows probate to be issued before the tax is paid in full. This helps executors complete a sale and pay the tax afterwards when the money is available. 

It’s a helpful option, but it isn’t available in every case, and approval is not guaranteed.

If you find yourself in a situation where you can’t pay Inheritance Tax and get the probate process moving, Provira’s Estate Advance exists to help.

We help executors all over the UK access up to 50% of the estate’s net value within days, with no compound interest, a dedicated underwriter with you every step of the way and no early repayment fees.  

Get in touch with our team to find out more about how Provira can help you pay Inheritance Tax today

Are there any other penalties for not paying Inheritance Tax other than interest?

There are other penalties that be may be charged to an estate if Inheritance Tax is not paid by the deadline. Aside from interest, which starts immediately and is calculated daily, HMRC may also apply penalties if the executor has submitted inaccurate information.

It is very important to keep clear records and communicate with HMRC if delays are likely.

This can reduce the risk of penalties and help find a solution.

The problem is that this financial pressure can easily become emotional pressure, which is why so many executors look for alternative options.

What help is available if you cannot pay your Inheritance Tax bill?

If you can’t pay your Inheritance Tax bill, you have a few other options:

Talk to HMRC early

HMRC is often more flexible than people expect. They can set up temporary payment plans or agree to short-term arrangements if they understand the situation. However, this isn’t guaranteed.

Consider specialist loans

This is where Provira’s Estate Advance can help. Our loans give executors access to up to 50% of the net value of the estate early, often within days of a complete approved application.

The loan is designed to help families pay their Inheritance Tax bill, without having to put down any property as collateral, or worry about compound interest spinning out of control.

To find out more about our Estate Advance, speak to our team by filling in this form.

Should you prepare to pay Inheritance Tax in advance?

Yes, if you are thinking ahead for your own family, the right planning can make a huge difference. 

Many people plan early by:

• Leaving enough cash for families to cover the bill.
• Using lifetime gifting allowances.
• Placing assets in trusts.
• Taking out a life insurance policy to cover the tax bill.

It’s worth speaking to a professional to find out which option might be best for you.

Paying your Inheritance Tax bill

If you can’t pay an Inheritance Tax bill on time, it can feel scary, but you don’t have to deal with it alone. Interest charges might start building up, but you do have options.

Firstly, you can speak to HMRC about payment plans or, alternatively, you can explore specialist funding solutions like Provira’s Estate Advance.

The key is to act early, communicate with HMRC and get the right support. That way, you can navigate the probate process calmly and protect the value of the estate for the people it was meant for.

If you’re facing an upcoming IHT bill and aren’t sure how to move forward, Provira is here to help you understand your options and take the pressure off your shoulders. Our caring and compassionate team are with you every step of the way, so you move forward with confidence.

Get in touch with our team to find out more about your loan options today.