Generally interest on inheritance tax (IHT)payable following an individual’s death runs from six months after the end of the month in which the individual died. However, for certain rights in relation to Scottish estates interest runs from the day after the six month date.
Separately, tax attributable to some assets, including shares in certain types of company, can be paid by instalments.
In advance of the introduction of an online IHT service (expected at some point in 2015/16), some small changes have been announced to the regime for the payment of interest on late paid IHT. Provisions will be introduced to align the interest commencement date for the rights in relation to Scottish estates with the general date of six months after the end of the month of death.
In addition, there will be an extension to the powers given to HMRC to make regulations in relation to the types of company whose shares can qualify for payment of tax by instalments.
Both these changes are expected to be introduced at the same time as the online service.