How to Make Inheritance Tax Payment?

Posted by Bluebond Tax Planning on February 4th, 2021

Inheritance tax payment has to be made if the worth of the property or the estate that you have acquired goes beyond the limit set by the government. If the estate or property’s worth goes beyond the limit, you will have to pay inheritance taxes. And clearing the taxes is very important or else you will not be able to use the property.

To make an inheritance tax payment, you will need a payment reference number first. You can apply for this number online or by using the post. One must secure the payment reference number at least three weeks before you plan to make the payment. Or else making the payment will be a bit of a problem for the individuals.

Paying taxes with your bank account

You can then make the payment using your bank account. You can also make the payment with a joint account that you had with the deceased. You can use online or telephone banking, use banking facilities, or by using Bacs or CHAPS. Due to the global pandemic, cheque payment for the inheritance taxes is currently not available.

One can also claim money back from the beneficiaries or the estate of the deceased after you get a grant of representation. This is also called probate.

Paying taxes from accounts of the deceased

By using the bank account of the deceased, you can also make the payment for the inheritance taxes. This can be done by using the government stock or bank accounts of the deceased. National Savings and Investments accounts of the deceased can also be used for this purpose.

Don’t know how much to pay?

If you are not aware of the exact amount of the inheritance tax payment, then you can make payments even before knowing the actual amount. These are called payments on account.

Check whether the payment has been received

HMRC does not send any kinds of receipts for the payment that you make for the inheritance taxes. They will simply write to inform you that the inheritance tax payment and the interest that you owe have been paid. If you made the inheritance tax payment with the help of your bank, then check with your bank. The bank statement will help you to understand whether the amount has been deducted or not.

These are some of how you can make the inheritance tax payment.