IHT Deadlines and Selling Inherited Property

One of the biggest challenges for executors is the inheritance tax (IHT) deadline. Tax must be paid before you can get probate, but the money to pay it is often locked in the property you need probate to sell. This catch-22 creates a cash flow problem that catches many families off guard.

This guide explains the IHT deadlines, your options for paying, and how a fast property sale can break the cycle.

The IHT Deadline Explained

When Is IHT Due?

Inheritance tax must be paid by the end of the sixth month after the date of death. For example:

If you miss the deadline, HMRC charges interest at 7.75% (as of 2026) on the unpaid amount, calculated daily.

Why This Creates a Problem

The process works like this:

1. Person dies, leaving a property in their estate.
2. You must value the property and submit the IHT return (form IHT400).
3. You must pay any IHT due before the grant of probate is issued.
4. You need the grant of probate to sell the property.
5. The money to pay the IHT is in the property you cannot yet sell.

This is the classic executor's cash flow problem. The larger the estate, the bigger the issue.

How Much IHT Will Be Due?

IHT is charged at 40% on the estate value above these allowances. For a property worth £600,000 with no other assets and a single person's allowance of £500,000, the IHT due would be £40,000 (40% of £100,000).

Use our equity calculator to estimate the net proceeds from selling, which can help you plan the IHT payment.

Options for Paying IHT Before the Property Sells

1. Pay from Cash Savings in the Estate

If the deceased had sufficient cash savings, investments, or life insurance payouts, these can be used to pay the IHT before the property is sold. This is the simplest solution but is not always available.

2. Pay in Instalments

You can apply to HMRC to pay IHT in annual instalments over 10 years if the estate includes property or certain other assets. Key points:

• Interest is charged on the outstanding balance
• The first instalment is due by the standard IHT deadline
• You can pay off the balance early when the property sells
• This option must be requested on form IHT400

3. Bridging Loan

Some lenders offer bridging loans secured against the inherited property. These short-term loans cover the IHT bill, and are repaid when the property sells. Bridging loans are expensive (typically 0.5-1.5% per month) but can solve the timing problem.

4. Direct to HMRC from the Buyer

In some cases, the property buyer can pay the IHT directly to HMRC as part of the purchase, with the remainder going to the estate. This requires cooperation from the buyer and solicitor. Our guaranteed sale service can arrange this.

Selling the Property Quickly After Probate

Once probate is granted, you want to sell the property as quickly as possible to:

• Repay any bridging loan or instalment arrangement
• Distribute the estate to beneficiaries
• Avoid ongoing costs (insurance, council tax, utilities, maintenance)

Sale Method Comparison

For most executors dealing with IHT deadlines, a guaranteed sale or assisted sale offers the best balance of speed and value.

Preparing the Property for Sale While Waiting for Probate

You can — and should — start preparing the property for sale during the probate process:

1. Get the property valued — See our guide on how to value a property for probate.
2. Clear the property — Remove personal belongings (with agreement of all beneficiaries).
3. Secure the property — Change locks, notify insurers, check for empty property insurance requirements.
4. Market the property — You can list with an estate agent or accept a cash offer before probate is granted; completion just waits for the grant.
5. Use the executor's checklist — Our executor's checklist walks you through the entire process.

What Happens After the Sale

Once the property sells:

1. Repay any IHT instalments or bridging loan — The solicitor handles this from sale proceeds.
2. Pay final estate expenses — Utilities, insurance, legal fees.
3. Distribute to beneficiaries — According to the will or intestacy rules.
4. File final estate accounts — Keep records for at least 12 years.

Key Deadlines Summary

How We Can Help

If you are an executor facing IHT deadlines, our secure sale service can help:

• Free valuation — RICS-standard assessment at no cost.
• Buyer ready before probate — We can agree terms before the grant is issued, so completion happens immediately after.
• 7-28 day completion — Fastest way to unlock the estate's funds.
• No fees — We cover all conveyancing and legal costs.
• Any condition — We buy properties that need clearing, repairs, or modernisation.

Contact us for a free, no-obligation assessment of your inherited property.