Farra is a death administration assistant for UK families. Get step-by-step guidance for registering a death, applying for probate, notifying banks, and managing bereavement admin. From essential documents to practical checklists, Farra simplifies estate paperwork and funeral-related tasks so you can focus on what matters.
Yes. Interest runs from the end of the sixth month after the month of death, at 7.75% from 9 January 2026. On that rate, £100,000 of IHT left unpaid for six months accrues about £3,875. You can pay before the grant using the Direct Payment Scheme, which has participating banks release funds straight to HMRC, or from your own funds and reclaim from the estate later. Inheritance tax is a UK-wide tax, so the deadline and the interest are the same wherever the deceased lived; the grant you apply for afterwards is not — probate in England, Wales and Northern Ireland, confirmation in Scotland.
HMRC charges late-payment interest on unpaid inheritance tax at 7.75% from 9 January 2026. The rate is the Bank of England base rate plus 4 percentage points — a margin that rose from 2.5 points on 6 April 2025 — so it changes whenever Bank Rate does. On a £100,000 IHT bill, 7.75% is £7,750 a year, or about £646 a month. Check the current figure in HMRC's inheritance tax interest rate table before you rely on it.
Executors face a frustrating catch-22 situation. This timing challenge is part of the broader probate process in the UK:
This creates a situation where interest can accrue even when executors are doing everything correctly, simply because the system is slow.
The Ministry of Justice publishes these figures quarterly for England and Wales. It does not break them down by estate type or by whether IHT was due, so the rows below are the categories that are actually published — not an estimate of how long your particular estate will take.
| Measure | January to March 2026 |
|---|---|
| All probate grants | 5 weeks mean, 1 week median |
| Digital applications not stopped | ~2 weeks |
| Applications that were stopped | 14 weeks |
| Letters of administration | 20 weeks with a will, 11 weeks without |
Source: Family Court Statistics Quarterly, January to March 2026, Ministry of Justice, published 25 June 2026. GOV.UK's own guidance is that you will usually get the grant within 12 weeks of submitting the application.
HMRC may open enquiries into estate valuations, particularly for property, business assets, or anything unusual. HMRC does not publish an average length for these, so nobody can honestly tell you how long one will take. What is certain is that interest continues to accrue throughout, even though the executor cannot finalise the estate.
The Direct Payment Scheme (also called the "IHT Direct Payment Scheme") allows executors to arrange for banks and building societies to pay inheritance tax directly to HMRC from the deceased's accounts - before probate is granted.
Most major UK banks and building societies participate in the scheme, including:
Note: Not all institutions participate, and some may have limits on the amount they'll release. Check with each institution directly.
Executors can pay IHT from their own money (or borrowed money) and reimburse themselves from the estate later. This avoids interest charges but requires having access to significant funds.
Estates sometimes borrow to pay the tax, either from a bank or from a lender offering "executor" or "probate" loans, with the estate repaying once the grant is issued. Whether that is cheaper than leaving the tax outstanding depends on the rate you are offered against HMRC's current 7.75%, and on the fees. There is no official source comparing these lenders, so this guide does not.
For certain assets — land and buildings, a business, controlling shareholdings and some unlisted shares — IHT can be paid in 10 equal annual instalments, the first due at the end of the sixth month after the death. GOV.UK's position is that you will usually pay interest on instalments: none on the first unless you pay it late, but on each later one you pay interest on the full outstanding balance. The exception is narrow and new — for assets inherited from 6 April 2026 onwards that qualify for Agricultural Relief or Business Relief the instalments are interest-free, and that does not apply to assets already being paid by instalments before that date.
GOV.UK lists the deceased's bank, savings or investment accounts and their government stock among the ways the tax can be paid. Whether a particular provider will release funds before the grant is a matter for that provider, and limits vary, so ask each one rather than assuming.
IHT is due by the end of the 6th month after the month of death. This is a different date from the deadline for the account itself: the IHT400 must reach HMRC within 12 months of the death, and before you apply for probate. Missing the payment deadline costs interest; missing the 12-month account deadline risks a penalty.
| If Death Occurred In | IHT Due By |
|---|---|
| January | 31 July |
| February | 31 August |
| March | 30 September |
| November | 31 May |
You don't need to pay IHT immediately. The 6-month window gives you time to gather information, complete valuations, and arrange payment. Interest only starts accruing after this deadline passes.
If you genuinely cannot pay the full IHT by the deadline:
Managing IHT deadlines effectively is crucial. For comprehensive guidance on all executor responsibilities, see our complete probate guide.