Inheritance Tax must be paid within six months of death, unless some agreement has been made to defer or extend the period.
There are no other exceptions.
Post Covid-19
All of the cases I have been processing were seemingly on hold, with effect from June 2020 we are seeing some new methods of working. I am not convinced this makes it any easy for you or I – but moving to the online model and doing without signatures seems to be about as far as we have got.
They have stopped issuing cheques for overpayments. More on this link https://www.icaew.com/insights/tax-news/2020/jun-2020/covid19-more-changes-to-iht-processes
Problem for you is this. ..
It may take you four months to get your head around the probate application, valuing the estate, collecting important information, pension statements, dealing with loans and liabilities, getting investment statements. Based on my present experience, Barclays take weeks to get investment statements prepared.
Then, once you start dealing with the Inland Revenue you need an F number – at least three weeks. And then with the delays at the Probate Registry – with their new software causing problems and the number of deaths causing a backlog in processing.
And then having to deal with Land Registry (at least ten working days to transfer ownership of a property using a TR1 form) and then the sale of the home taking weeks to deal with. There is a good chance you’ll miss the deadline of six months from the date of death in order to pay any Inheritance Tax.
Honestly, I think the revenue are playing a dirty game in this area – but guess what – you can do little about it. That’s what you have to work with – like it or not.
This is all very important because if you don’t get all the information to the inland revenue and you don’t get the inheritance tax paid on time then you’ll face penalties and or interest added to the amounts outstanding. Sure if the estate does not have tax due then you can afford to wait – however if there is an inheritance tax liability then you’d better get a move on or pay the price in a few months.
So, get your skates on. Everything is taking longer and longer – but the Inland Revenue don’t care and there is no political will to sort this out.