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Where do you Pay Inheritance Tax: A Practical Guide for UK Executors in 2025

  • Belgravia Capital
  • May 31
  • 4 min read

One of the most common - and urgent - questions we hear from families handling an estate is:


Where do I actually pay inheritance tax in the UK?

With the burden of paperwork, deadlines, and financial pressure mounting, it’s easy to feel overwhelmed. HMRC’s guidance can be confusing, and if payments are late or misallocated, you may face interest charges or delays in obtaining probate.


At Belgravia Capital Wealth Management, we specialise in simplifying the inheritance tax (IHT) process. In this article, we’ll give you clear, step-by-step answers on:


  • Where and how to pay inheritance tax in the UK

  • What payment methods are available

  • What reference numbers you need

  • Who can make the payment

  • How to avoid interest charges and probate delays


When Must Inheritance Tax Be Paid?


Before we look at where to pay, let’s clarify when the tax is due:


Inheritance tax must be paid by the end of the sixth month after the person’s death. For example:


  • If someone died in January, the tax must be paid by 31st July

  • After that deadline, interest starts accruing on any unpaid amount


Probate cannot be granted until HMRC confirms that either:


  • IHT has been paid in full, or

  • No IHT is due


So early payment is critical.


Where to Pay Inheritance Tax: The Official HMRC Channels


Inheritance tax is paid directly to HM Revenue & Customs (HMRC). You do not pay it through the probate office, your local council, or the courts.


Here are the main payment options:


  1. Direct from the Deceased’s Bank or Building Society


This is often the simplest route, many banks in the UK offer a Direct Payment Scheme, which allows IHT to be paid directly from the deceased’s account before probate is granted.


How it works:


  • Fill in Form IHT423 to request payment directly from the account

  • Send it with your completed IHT400 form to HMRC

  • The bank sends payment to HMRC on your behalf


Participating banks include:


  • Barclays

  • HSBC

  • Lloyds

  • NatWest

  • Nationwide

  • Santander

  • Most UK building societies


This method avoids dipping into your own funds and speeds up probate.


  1. Bank Transfer from Executor or Solicitor



If you or your solicitor are paying the tax personally (and later reimbursing from the estate), use one of the following payment options:


CHAPS or Faster Payments (UK bank account)


  • Pay to HMRC’s account at Citi Bank:


    • Sort code: 08-32-10

    • Account number: 12001039

    • Account name: HMRC Cumbernauld


  • Use the 15-digit IHT reference number as the payment reference

  • Available 24/7 via online banking


BACS transfer



  • Slower than CHAPS/Faster Payments (up to 3 working days)

  • Use the same sort code and account number as above


3. Cheque Payment (Less Common Today)


You can still pay IHT by cheque if you prefer, although it’s slower and more prone to delay.


  • Make cheques payable to ‘HM Revenue and Customs only’

  • Write the 15-digit IHT reference on the back

  • Post to:

    HMRC

    Inheritance Tax

    BX9 1HT

    United Kingdom


Allow time for postal delays (not recommended close to the 6-month deadline).


  1. International Payment (if paying from abroad)


If you’re overseas and administering a UK estate, you can pay HMRC from a non-UK account. Use the international bank details:


  • Bank name: Citi Bank

  • Account number: 12001039

  • Sort code: 08-32-10

  • IBAN: GB35CITI08321012001039

  • BIC: CITIGB2L

  • Account name: HMRC Cumbernauld


Include your 15-digit IHT reference number in the payment reference field.


What You’ll Need to Make the Payment


To make a valid inheritance tax payment to HMRC, you must have:


  1. The 15-digit IHT reference number


    • Issued by HMRC after submitting Form IHT422 or IHT400

    • You cannot make a payment without it


  2. The correct HMRC bank account details

  3. Confirmation of how much to pay


    • This comes from your IHT calculation (usually using Form IHT400)


What Happens After You Pay IHT?


After payment is made:


  • HMRC will apply it to the estate’s IHT account

  • You’ll receive confirmation within 3–6 weeks

  • Once HMRC confirms sufficient tax has been paid, you can proceed to probate

  • If you overpay, HMRC will issue a refund


If you underpay or pay late, interest charges will apply from the 7th month after death, even if you were unaware tax was due.


Who Is Responsible for Paying Inheritance Tax?


Typically, the executor or administrator of the estate pays the inheritance tax, using funds from:


  • The deceased’s bank accounts

  • Sale of assets (property, investments)

  • Personal funds, to be reimbursed later


In rare cases where the estate cannot cover the tax and the executor paid personally, the beneficiaries may become liable for part of the tax, especially with lifetime gifts made within 7 years of death.


Can You Pay Inheritance Tax in Instalments?


Yes. HMRC allows IHT on certain assets (like property or business shares) to be paid in 10 annual instalments, with interest charged after the first payment.


This applies if:


  • The estate includes property that won’t be sold immediately

  • Shares or business assets are involved

  • The total IHT bill is too large to pay at once


You’ll need to opt for instalments using Form IHT400 and ensure the first instalment is paid before the probate application.


Avoid These Common Mistakes when paying IHT


To avoid delays and penalties, watch out for these common errors:


  • Using the wrong bank details

  • Forgetting to quote the IHT reference number

  • Waiting too long and missing the 6-month deadline

  • Paying from your own account before confirming your executor status

  • Assuming a solicitor or bank has already paid when they haven’t


How Belgravia Capital Wealth Management Can Help with Inheritance Tax


Paying inheritance tax doesn’t have to be stressful. Our team can:


  • Calculate how much IHT is due

  • Apply for your IHT reference number

  • Liaise with your bank or solicitor to arrange payment

  • Help you claim reliefs to reduce the bill

  • Create a strategy to avoid or limit IHT in future generations


We take care of the details, so you can focus on your family and your future.


Conclusion: Where do you Pay Inheritance Tax


Inheritance tax must be paid directly to HMRC using the correct reference number and payment channel, whether that’s a bank transfer, direct from the deceased’s account, or a cheque.


Timely, accurate payment is essential to avoid interest and probate delays. And if the tax bill is high, planning strategies - like paying in instalments or reducing the estate size - can save you money.


Need help managing the payment process or reducing the tax due?


📩 Contact Belgravia Capital Wealth Management at

and we’ll guide you every step of the way.



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