Receiving an inheritance tax (IHT) bill can be a huge shock and it often creates a multitude of questions – with the key one relating to how you will ultimately pay it.
Not all families have funds that they can call on in these situations. So, if you have concerns about the issue, your initial reaction may be – rather understandably – to seek help from HMRC.
HMRC Grant on Credit
HMRC does have a concept designed to provide assistance – a HMRC Grant on Credit. This lets HMRC grant probate on the basis that there is a method of payment agreed for the IHT following that step.
However, through our recent work, we have noticed a change in approach from HMRC when it comes to the grants.
Dicky Davies, Business Development Director at Tower Street Finance, said: “In our experience, we have seen HMRC become quite reluctant to offer a Grant on Credit. We believe this is because it is more risk for them and they prefer people to find their own solutions for paying IHT.
“In recent weeks, we have also heard from legal experts and discovered that HMRC now requires documentary proof that an individual has tried but been unable to secure funding to pay an IHT bill before they will consider a Grant on Credit. As a result, it appears that getting a Grant on Credit is far from a straightforward process.”
While such issues might create problems for some families, Dicky added that there are other avenues to explore – including the range of products offered by Tower Street Finance.
He said: “We created our IHT Loan product precisely for this kind of situation. It is available to anyone who faces an IHT bill, while there is no personal liability, no credit checks and no monthly repayments. The idea behind this unique product is very simple – we pay HMRC directly and the estate subsequently repays the funding.
“So, if you have concerns about an IHT bill and are wondering how to pay, please get in touch today and discover how we could help.”