Interest has always been charged on any Inheritance Tax unpaid six months after the date of death.

Such interest has been at a relatively low level at just above, or just below, Bank Base Rate. This allows Executors to sell assets such as the family house without feeling unduly pressurised.

However, as from 29 September 2009 an additional rate of interest is being introduced on unpaid Inheritance Tax. This will be fixed at a rate of 2.5% above Base Rate. The new rate will, therefore, start at 3% per annum. This is in addition to the 40% tax payable.

Just another sign of the times!

If you require any further advice or assistance please contact Warren Hawkings or a member of the Wills, Probate, Tax and Trusts team at Wortley Byers on 01277 268345 or whawkings@wortleybyers.co.uk.

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