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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

House selling and inheritance tax during this Pandemic.

4 replies

Wingedharpy · 05/05/2020 19:38

Posting here for traffic.
I believe inheritance tax, when it has to be paid, must be paid within 6 months of an individual dying.
Have there been any temporary dispensations introduced, given that estate agents are currently shut and trying to sell a deceased person's home is extremely tricky right now, thanks to the Pandemic.?
All advice gratefully received.

OP posts:
Wingedharpy · 06/05/2020 00:35

I realise my post doesn't make much sense, so will try again.

I believe an inheritance tax bill, when it has to be paid, must be paid within 6 months of the individual dying, otherwise, there is interest to pay on the amount due.

Can anyone advise if the 6 month deadline has been extended temporarily, due to the difficulty in trying to get a house valued and sell it during this Pandemic.?

All advice welcome.

OP posts:
BubblesBuddy · 06/05/2020 00:48

I believe the estate can make payments on account in advance of the sale but within 6 months of the death. These are made from other assets and accounts which can be liquidised and, hopefully, the deceased person had!

MabelTheCow · 06/05/2020 00:50

Hi, there is different rules for inheritance tax for cash assets and property.
You have 6 months to pay the IHT without incurring interest. The IHT for cash, shares, assets other than property needs to be paid before you can apply for probate. The tax due on property can be paid after probate and in instalments over 10 years. I think there was an extra part of the form to fill in for that

Wingedharpy · 06/05/2020 01:00

Thank you.
This is helpful.
Sadly, I don't think there are any assets, other than a property, but I know there are debts.
Beneficiaries are relatively young and will almost certainly not have a spare few thousand pounds to hand.

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