Who pays inheritance tax on a house?

The estate pays it, not the beneficiaries. The personal representatives are responsible for reporting the estate to HMRC and settling the bill before the estate is distributed.

When is inheritance tax due?

By the end of the sixth month after the month of death. HMRC charges interest on anything unpaid after that, which is why executors often need to raise cash from the property rather than wait for a slow sale.

Can you pay inheritance tax in instalments on a house?

Yes. Tax attributable to land and buildings can usually be paid in ten annual instalments, with interest charged on the outstanding balance. If the property is sold, the remaining balance becomes payable at that point.

What if the estate has no cash to pay the bill?

This is the classic probate deadlock: the grant is needed to sell the house, but the tax has to be paid before the grant is issued. Options include the instalment route, a direct payment scheme from the deceased's bank accounts, an executor loan, or a beneficiary lending the money to the estate.

Inheritance tax on property

Name: The Quick House Buyers — London
Address: Level 6, Design Centre East, Chelsea Harbour, London, England, SW10 0XF, GB
Telephone: 020 3744 0249

Written and reviewed by Kris McClory, Head of PurchasesLast reviewed 6 August 2026

Inheritance tax is charged on the estate, not on the person inheriting, and the house is valued at its open market value on the date of death. Payment is due by the end of the sixth month after the month of death, with interest running after that. Tax on land and buildings can usually be spread over ten annual instalments.

Surveyor's clipboard and floor plan on the windowsill of an empty house

Need the estate settled without a long sale?

We buy probate properties as they are, contents left in place, and we'll work to the date the executors need.

Get an offer on the property »Just want a valuation Or call 020 3744 0249

How the property is valued for the tax

HMRC wants the open market value of the house on the date of death: the price it would realistically fetch between a willing buyer and a willing seller. For anything other than a modest estate, that means a written valuation from a RICS surveyor or at minimum evidenced comparable sold prices, not a single estate agent's opinion scribbled on a letterhead.

The District Valuer can and does challenge figures that look convenient. An evidenced valuation is your defence, and it doubles as the baseline for any later capital gains calculation.

The deadline that causes the problem

Key inheritance tax dates for an estate with a house in it

Key inheritance tax dates for an estate with a house in it
Point in time	What happens
Date of death	Valuation date for the property and the rest of the estate
End of month 6 after death	Inheritance tax payment deadline; interest starts after this
Before the grant is issued	HMRC must have processed the tax account
Within 10 years, if using instalments	Ten annual payments on the property element, with interest
On sale of the property	Any outstanding instalment balance falls due

Breaking the deadlock when the estate has no cash

The awkward part of a property-heavy estate is that the tax comes before the money. Executors generally have four routes out:

The instalment option on the property element, which buys time but accrues interest.
The direct payment scheme, where the deceased's bank or building society pays HMRC directly from their accounts.
An executor loan secured against the estate, arranged through the solicitor.
A beneficiary advance, where whoever is inheriting lends the estate the money and is repaid on sale.

Where a fast sale actually helps

Once the grant is issued, the speed of the sale decides how much interest the estate pays and how long it carries insurance, council tax and utilities on an empty house. An agreed cash price with a fixed completion date lets the personal representatives plan the tax payment against a real date instead of hoping a chain holds together.

This page is general information, not tax advice. Confirm current thresholds, rates and reliefs on GOV.UK or with the estate's solicitor or accountant.

Common questions

Who pays inheritance tax on a house?: The estate pays it, not the beneficiaries. The personal representatives are responsible for reporting the estate to HMRC and settling the bill before the estate is distributed.
When is inheritance tax due?: By the end of the sixth month after the month of death. HMRC charges interest on anything unpaid after that, which is why executors often need to raise cash from the property rather than wait for a slow sale.
Can you pay inheritance tax in instalments on a house?: Yes. Tax attributable to land and buildings can usually be paid in ten annual instalments, with interest charged on the outstanding balance. If the property is sold, the remaining balance becomes payable at that point.
What if the estate has no cash to pay the bill?: This is the classic probate deadlock: the grant is needed to sell the house, but the tax has to be paid before the grant is issued. Options include the instalment route, a direct payment scheme from the deceased's bank accounts, an executor loan, or a beneficiary lending the money to the estate.