How do you pay Inheritance Tax before probate is granted?

Why the tax comes before the grant

Probate, in GOV.UK's words, is the legal right to deal with someone's property, money and possessions when they die. GOV.UK also says that if Inheritance Tax is owed, you normally have to pay some of it before probate is granted. That creates the familiar knot: the tax has to be paid before the grant, and the money to pay it often sits in accounts belonging to the person who died.

The order is built into the process. HMRC sends a unique code confirming that enough tax has been paid, usually within 20 working days of receiving the IHT400 form or the payment, whichever is later, and GOV.UK says you need that code to apply for probate in England and Wales or confirmation in Scotland. In Northern Ireland, HMRC returns its completed part of form IHT421 instead.

HMRC's Inheritance Tax Manual (IHTM30151) adds the legal side: personal representatives are expected to pay the tax they are liable for when they deliver the IHT400 account, which is why the form and the payment usually travel together.

Step one: the reference number, three weeks ahead

Before any payment can be made, you need an Inheritance Tax reference number. GOV.UK says to get it from HMRC at least 3 weeks before you make a payment. For most estates you apply online; for a trust, HMRC asks for form IHT122 by post.

The reference number is what ties your payment to the estate. GOV.UK warns that using the wrong one can delay a payment or put it towards a different tax bill. With a six-month payment deadline, asking for it early costs nothing and removes the most common bottleneck.

Step two: the Direct Payment Scheme and form IHT423

The Direct Payment Scheme lets banks, building societies and investment providers pay some or all of the tax straight to HMRC from the deceased's accounts. GOV.UK lists National Savings & Investments, brokers, investment firms and wealth management accounts alongside banks, and says you can start the process before you have probate.

1. Ask each bank, building society or investment provider to make you a personal representative. GOV.UK notes that each one does this differently and some may not be part of the scheme.
2. Get your Inheritance Tax payment reference number.
3. Fill in form IHT423 and send it to the bank or provider. GOV.UK says to send a separate form for each account you want to pay HMRC from.
4. Send form IHT400 and its schedules to HMRC. For an estate in Scotland, include Confirmation form C1; for Northern Ireland, include form IHT421. The provider then pays HMRC some or all of the tax owed.

Other ways to pay

The Direct Payment Scheme is not the only route. GOV.UK also lists approving a payment through your bank account, bank transfer, telephone banking, paying at a bank or building society, a cheque by post, British government stock, and transferring national heritage property. Executors who can cover the bill from other money pay by transfer and quote the reference number.

Transfer speed matters near the deadline. GOV.UK says Faster Payments usually reach HMRC the same or next day, CHAPS usually the same working day within your bank's processing times, and Bacs usually takes 3 working days. For tax on things that take time to sell, such as land and buildings, GOV.UK allows equal yearly instalments over 10 years, with the first due at the end of the sixth month after the death.

Common mistakes

Assuming every bank takes part. GOV.UK is clear that some providers may not be part of the Direct Payment Scheme, so check with each one early rather than in the last weeks before the deadline.

Sending one IHT423 for several accounts. The form goes to each provider, one per account you want to pay from.

Expecting the probate code straight away. HMRC's code usually arrives within 20 working days of the IHT400 or the payment, whichever reaches HMRC later. Plan the probate application after that, not alongside the payment.

Forgetting the Scottish or Northern Irish form. Confirmation form C1 or form IHT421 travels with the IHT400 for those estates.

If it helps to see these steps against the calendar, ProbateClock lays them out worked back from the six-month deadline, from the reference number through IHT400 and the Direct Payment Scheme to the probate application, with one line on why each step sits where it does.

This guide summarises GOV.UK and HMRC guidance as checked on 1 October 2026. It is not tax or legal advice. Procedures change, and for a complicated estate it is usual to speak to HMRC or a solicitor.

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