Key Features

How the IHT Loan Works

HMRC’s 6-Month Deadline

Inheritance Tax must be paid within 6 months of the end of the month in which the deceased died. After this deadline, HMRC charges interest at 7.5% per year (2024–25). Late payment can also delay the Grant of Probate significantly. Do not wait.

Paid Direct to HMRC

Funds are transferred straight to HMRC using the estate’s IHT Reference Number. The executor never handles the money — eliminating any personal financial risk.

Full, Instalment, or Shortfall

Whether the estate needs the full IHT funded, help with a scheduled instalment, or just a shortfall where some cash is available — all three scenarios are covered.

Grant of Probate Unblocked

Once HMRC confirms receipt, your solicitor is notified immediately and can submit the Grant of Probate application without any further delay.

No Credit Check

The loan is secured against the estate, not the applicant personally. No credit check is carried out at any point — suitable for all executors regardless of personal finances.

Interest Frozen at 18 Months

If a property proves difficult to sell or the estate takes longer than expected, interest stops accruing at the 18-month point — protecting beneficiaries from runaway costs.

No Solicitor Liability

Solicitors and estate professionals can refer clients with complete confidence. There is zero liability on the referring firm — the lending relationship is directly with the client.

Eligibility

Who Can Apply?

Eligible situations

  • Estate with an IHT liability due to HMRC within 6 months
  • Executor or administrator of a UK estate
  • Estate primarily comprising property (not yet sold)
  • Estate with partial cash — funding a shortfall only
  • Solicitor or professional making a referral on a client’s behalf
  • Estates where IHT deadline has already passed (HMRC interest included)

Not required

  • A good credit history — no credit check whatsoever
  • Personal security — the loan is secured against the estate
  • Monthly repayment ability — repaid from the estate in one go
  • The estate to have sold property before applying
  • Any personal guarantee from the executor
FAQs

IHT Loan Questions Answered

An IHT reference number is a unique identifier provided by HMRC for the deceased’s estate. It is obtained by completing form IHT422 or applying online at least 3 weeks before you intend to pay. The lending partner uses this reference to pay HMRC directly on behalf of the estate.

Yes. If the estate has some liquid cash but not enough to cover the full IHT bill, the lending partner can fund the shortfall only. You only borrow — and pay interest on — what is actually needed.

For straightforward estates with a confirmed IHT reference number, HMRC typically receives payment within 3–7 working days of loan approval. The estate’s solicitor receives confirmation from HMRC as soon as payment clears, allowing the Grant of Probate application to be submitted immediately.

The loan is repaid from the proceeds of the property sale, once probate has been granted and the property conveyance completes. There are no monthly repayments and no early repayment penalty if the property sells sooner than expected. If the property takes longer than 18 months to sell, interest stops accruing at that point.

Also Available

Other Estate Loan Products

Estate Expenses

Fund Administration Costs as They Arise

Drawdown facility for legal fees, property clearance, insurance, and all other testamentary expenses.

View Estate Expense Loan
Beneficiary Advance

Access Up to 50% of Your Inheritance Early

Named beneficiaries can access funds before probate completes. No monthly repayments.

View Beneficiary Advance
Guides

Inheritance Tax Guide 2025

Rates, nil-rate bands, HMRC deadlines, and all available reliefs explained clearly.

Read the Guide

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