The interest rate charged on overdue inheritance tax (IHT) will increase to 6%, which is more than double the rate at the start of last year, according to the latest figures from HM Revenue & Customs (HMRC).
One year ago the interest rate charged was 2.75%, and its increase to 6% is effective from today (6 January). This change is driven by base rate rises following the economic turmoil experienced by the UK recently, according to Canada Life. IHT is normally due by the end of the sixth month after the event, and failure to pay by that point will result in interest being charged. For example, if the person dies in January, IHT must be paid by 31 July. However, IHT can also be paid in advance. If the estate has not been settled within the six month period, an estimated IHT charge could ...
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