IHTM44126 - Pre-owned assets: unwinding of home loan or double trust scheme: payment of Inheritance Tax

Where the property is brought into charge either as a gift with reservation (IHTM14301), or as part of the taxpayer’s estate on death, the Inheritance Tax (IHT) due on the property can be paid by instalments (IHTM30191), but the right to pay by instalments will cease on the sale of the qualifying property.

Where the charge to tax on first death could cause undue hardship we will consider deferring the IHT payable on first death to the date of death of the surviving spouse, or on the earlier sale of the property.