Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of extending the current six‑month deadline for the payment of Inheritance Tax in cases of administrative delays in the granting of probate.

The deadline for payment of Inheritance Tax (IHT) is the end of the sixth month after the month in which the death occurs. Personal representatives (PRs) are required to make a payment of IHT before applying for probate. This is a longstanding requirement which ensures that the tax due can be collected quickly and efficiently.

HMRC offers several payment options if there are not sufficient liquid funds in the estate to pay IHT before applying for probate, including the Direct Payment Scheme and the option to pay IHT by yearly instalments. For assets which are eligible for payment of IHT by instalments, only the first instalment will be due before PRs can proceed to apply for probate. Further information on IHT payment options is available at: https://www.gov.uk/paying-inheritance-tax

In certain circumstances, PRs may also apply to HMRC to defer payment of the IHT until probate has been granted (a ‘grant on credit’). Once probate has been issued, the PRs will be expected to pay the outstanding tax as soon as possible. Further information on this option is available here: https://www.gov.uk/guidance/applying-for-a-grant-on-credit-for-inheritance-tax

HM Courts & Tribunals Service has invested in more staff, alongside system and process improvements to reduce and maintain lower processing times for probate applications during the last year. The Ministry of Justice publishes regular data on probate timeliness in the quarterly family court statistics bulletin: https://www.gov.uk/government/collections/family-court-statistics-quarterly