HM Revenue and Customs Now Charge 7.5 per cent Interest on Unpaid Inheritance Tax Bills

UK taxpayers with unpaid inheritance tax bills should now consider the effect of interest on unpaid tax.  The rate HM Revenue and Customs now charges has risen to 7.5 per cent.  That rate is at a 15-year high. The revised rate came into force on Tuesday 11 July in a move which is 2.5 per cent above the Bank of England’s base rate.

The charge on overdue inheritance tax stood at just 2.75 per cent in January 2022!!!  If you have elected to pay inheritance tax by instalments, you should review the cost of those arrangements as a matter of urgency.

Have a look at the HMRC figures at:

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates#inheritance-tax-capital-transfer-tax-and-estate-duty–reg-4a

Stephen Parnham

July 2023