IHT400 · IHT423

Paying Inheritance Tax before probate: steps and options

Last checked 5 October 2026 against HMRC’s forms, guidance and the law · rules version 2026-10-05.1

In England and Wales, executors must pay all the Inheritance Tax that is not being paid by instalments, plus any instalments already due, before they can get probate (IHTM30172). The tax is due by the end of the sixth month after the month of death. HMRC usually sends the code needed for the probate application within 20 working days of receiving the IHT400 or the payment, whichever is later.

Why the tax comes before probate

Probate, formally a "grant of representation", is the court document that gives the executors (or administrators, where there is no will) the right to deal with the deceased's money and property. Together they are called personal representatives.

HMRC's manual sets out the order. Before personal representatives can obtain a grant, they must pay all the tax they are liable for, except the tax on assets they have chosen to pay by instalments (IHTM30172). The law says the same: personal representatives pay the tax they are liable for when they deliver their account (IHTA 1984 s.226(2)).

The IHT400, the full Inheritance Tax account sent to HM Revenue and Customs (HMRC), lists the assets in two columns:

Column A: bank accounts, listed shares, household goods and most other assets. The tax on these must be paid before the grant.
Column B: unsold houses, land and buildings, and some business assets and shares. The tax on these may be paid in 10 yearly instalments if you choose that at box 110.

This creates a familiar difficulty. HMRC's notes recognise that a grant "may be required in order to gain access to the assets in the deceased's estate", which can make the money for the tax hard to raise. The routes HMRC describes are set out below.

The order of steps

Check whether an IHT400 is needed. Some estates are "excepted" and need no IHT400; see excepted estates.
Apply for an Inheritance Tax reference number at least 3 weeks before you pay. You apply online through GOV.UK's IHT422 page; the number goes in box 3 of the IHT400.
Fill in the IHT400 and its schedules and work out the tax, or tick the box asking HMRC to work it out. Decide at box 110 whether to pay by instalments on column B property, and at box 120 whether to use the Direct Payment Scheme.
Arrange the money, using one or more of the routes below.
Send the IHT400 and pay. The address is Inheritance Tax, HM Revenue and Customs, BX9 1HT. GOV.UK asks for cheques to be sent separately from forms and letters.
Wait for HMRC's code. HMRC "will send you a unique code confirming you've paid enough tax", usually within 20 working days of receiving the IHT400 or the payment, whichever is later.
Apply for probate online or by post, using that code. This step is separate from HMRC.

The key dates

Event	Rule	For a death on 17 January 2026
Tax due	End of the sixth month after the month of death (IHTA s.226(1))	31 July 2026
Interest starts on unpaid tax	First day of the seventh month (IHTA s.233)	1 August 2026
IHT400 due	12 months from the end of the month of death (IHTA s.216(6)(a))	31 January 2027
Reference number	At least 3 weeks before paying (GOV.UK)	Depends on when you pay

HMRC's form describes the IHT400 deadline as "within 12 months of the date of death"; the law counts from the end of the month of death. Interest is charged even if probate has not been granted (IHT400 Calculation). Inheritance Tax interest and late payment explains the rates and the arithmetic.

Ways to pay before probate

From the deceased's accounts: the Direct Payment Scheme

Participating banks, building societies, National Savings and Investments (NS&I), brokers and investment managers can send money from the deceased's sole-name accounts straight to HMRC. You send one Schedule IHT423 per account to the organisation, not to HMRC, and joint accounts cannot be used. The details are in IHT423 and the Direct Payment Scheme.

From your own money

GOV.UK says you can pay from your own bank account, or from a joint account you held with the deceased, and "claim the money back from the deceased's estate or the beneficiaries once you get probate". Payment can be made online, by bank transfer, at a bank or by cheque, quoting the reference number.

NS&I savings

HMRC's notes say NS&I is part of the Direct Payment Scheme and "will release funds from the deceased's accounts direct to HMRC". The same IHT423 is used.

British government stock

If the deceased held British government stock, you write to the registrar that runs the scheme (GOV.UK gives the address) and send HMRC a letter saying how much tax to take from the stock, with the IHT400. HMRC then asks for the transfer, which "could take up to 4 weeks", and GOV.UK advises against this route if you need probate quickly. If the stock does not cover the tax, HMRC writes to say how much more to pay.

Instalments on houses and land

The tax on unsold land and buildings, including a house, can be paid in 10 equal yearly instalments (IHTA s.227). This applies even if the property is let. The first instalment is due on the normal due date and the rest on the same date each year.

For a house, each later instalment carries interest on the whole unpaid balance for the year (IHTA s.227(3); IHTM30362). If the property is sold, the outstanding tax becomes payable (s.227(4)). GOV.UK says you can pay off the full tax and interest at any time. For the valuation itself, see IHT405: houses and land.

If none of these is possible: postponing the tax

If you cannot release funds from the estate, GOV.UK describes writing to HMRC to ask to postpone some or all of the tax until after the grant, known as a "grant on credit". The letter states the most you can pay now and how the rest will be raised. HMRC considers "each case on its own merits". If it agrees, it asks for a signed undertaking, "a legally binding promise to pay the Inheritance Tax within an agreed timescale". HMRC may also register a notice of the tax charge against land at the Land Registry. Interest still runs on tax unpaid after the due date.

Borrowing

The HMRC and GOV.UK guidance reviewed for this page does not describe borrowing to pay Inheritance Tax before probate. The routes it describes are those above. Any decision about borrowing is for the executors, and this guide does not cover it.

Worked example

Suppose someone died on 17 January 2026, leaving a house worth £500,000 to their two children and £500,000 of savings and investments after debts. There are no gifts, and nothing goes to a spouse or charity. Because the home goes to the children, the residence nil rate band of £175,000 applies on top of the £325,000 nil rate band. The estate is below £2,000,000, so that band is not tapered.

Step	Amount
Chargeable estate	£1,000,000
Less nil rate band	£325,000
Less residence nil rate band	£175,000
Taxable at 40%	£500,000
Inheritance Tax	£200,000
Share relating to the house (column B)	£100,000
Share relating to savings and investments (column A)	£100,000

The executors choose instalments on the house at box 110 and send the IHT400 on 12 June 2026. The first instalment is due on 31 July 2026, more than 30 days away, so the amount to pay before probate is £100,000 (IHT400 Calculation box 65). Without instalments it would be £200,000. Had they sent the IHT400 on 20 July 2026, the first instalment would have counted as due as well, making £110,000.

If HMRC receives the IHT400 on 15 June and the payment on 19 June 2026, the code would usually arrive within 20 working days of 19 June, which is by 17 July 2026.

The house tax is then paid as 10 instalments of £10,000. The first is due by 31 July 2026. If it is paid on time, the second (due 31 July 2027) carries interest on the £90,000 still unpaid for the year: £6,955.94 at 7.75% if the rate does not change, making £16,955.94.

Timing matters. Had the executors sent the IHT400 and paid on 1 October 2026, interest would be added: £1,312.84 on the £100,000 and £131.28 on the first instalment. The total to pay before probate would then be £111,444.12.

Working on an IHT400 for an estate?

The free check asks a few questions about the estate and tells you whether an IHT400 is needed, which schedules apply and which documents to gather. No sign-up.

Do the free check Start an estate inventory

Software to help you prepare your own IHT400. Not legal or tax advice. We do not apply for probate. Not affiliated with HMRC.

Paying early, overpaying and refunds

Payment on account. GOV.UK says you can pay before you know the exact amount. HMRC's notes say interest is not charged on the amount paid "from the date we receive it".
Overpayment. If more is paid than the final bill, HMRC refunds the excess after probate, with interest. The repayment rate has been 2.75% a year since 9 January 2026 (Bank Rate minus 1%, with a 0.5% minimum). GOV.UK asks for a letter headed "Repayment - further details" with the bank account details for the refund.
Time limit. HMRC's manual says a repayment is not made if the claim comes more than four years after the payment (IHTM30402).
Direct Payment Scheme refunds. HMRC returns the money to the organisation that sent it, and not to the estate until a grant has been obtained.

The probate application and its fee

The probate application goes to the Probate Service, not to HMRC, and its fee is a court fee. GOV.UK says the fee is £526 if the estate is worth more than £5,000, with no fee at £5,000 or less, and that you will usually get probate within 12 weeks of applying. GOV.UK also says not to send cheques for probate fees to HMRC. This site helps with the IHT400 only; it never prepares or files the probate application.

Common mistakes

Paying before the reference number arrives. GOV.UK asks for at least 3 weeks.
Waiting for probate before paying. Interest starts on the first day of the seventh month after the month of death, grant or no grant.
Assuming instalments cover everything. Only unsold land, buildings and certain business assets and shares qualify. Tax on bank accounts and listed shares is paid in full.
Carrying on with instalments after a sale. Selling the property makes the outstanding tax payable.
Sending IHT423 to HMRC. It goes to the bank or other organisation.
Applying for probate before the code arrives. The application cannot be completed without it.

What happens next

After the grant, the executors can collect the estate, repay anyone who paid tax from their own funds, and pay the remaining instalments each year. If values change, GOV.UK asks you to tell HMRC once the values are final or 18 months after the death, whichever is sooner.

HMRC may check the IHT400. GOV.UK says that if you have not heard from HMRC 14 weeks after submitting it, no further checks will be carried out. HMRC writes when all the tax and interest has been paid.

Common questions

Does Inheritance Tax have to be paid before probate?

In most cases, yes. HMRC’s manual (IHTM30172) says personal representatives must pay all the tax they are liable for before getting a grant, except tax on assets they have chosen to pay by instalments, plus any instalments already due.

How long after sending the IHT400 can I apply for probate?

You apply once HMRC sends a unique code confirming that enough tax has been paid. GOV.UK says this usually arrives within 20 working days of HMRC receiving the IHT400 or the payment, whichever is later.

How can the tax be paid if the deceased’s money is frozen until probate?

GOV.UK describes several routes: the Direct Payment Scheme from the deceased’s sole-name accounts; paying from your own money and reclaiming it after probate; and British government stock. If none is possible, you can ask HMRC to postpone some of the tax, known as a grant on credit.

Can the tax on the house be paid in instalments?

The tax on unsold land and buildings, including a house, can be paid in 10 equal yearly instalments if the executors choose this at box 110 of the IHT400. For a house, interest is charged on the unpaid balance, and selling it makes the rest payable.

Is the probate fee paid to HMRC?

No. The probate application fee is a court fee paid when you apply for probate. GOV.UK says it is £526 if the estate is worth more than £5,000, with no fee at £5,000 or less.

Can money be borrowed to pay Inheritance Tax before probate?

The HMRC and GOV.UK guidance reviewed for this guide does not describe borrowing. It describes the Direct Payment Scheme, own funds, government stock, instalments and postponement. Any decision about borrowing is for the executors.