Applying for a Grant on Credit

Photograph of Erin Clift

Posted: 15th May 2024
by Erin Clift


Historically HMRC will only permit a grant on credit in exceptional circumstances, where the executors have tried everything else to raise and release funds from the Estate. However, as of the 01 April 2024, personal representatives (executor and administrators) are no longer required to seek commercial loans to pay Inheritance Tax before applying for a ‘grant on credit’ from HMRC. If the application for a grant on credit is agreed, HMRC will postpone the payment deadline for all or part of the tax, although the applicant must undertake to pay the IHT within an agreed timescale.

NB: Interest is due by the end of the sixth month after a testator has died. A grant on credit does NOT stop interest accruing to HMRC on the IHT due.

Changes to the IHT400 Form: a new Grant on Credit section

Page 66 of the IHT400 Notes sees an addition of a Grants on Credit section.

The guidance states that the following process is required in order to apply for a grant on credit:

  1. Send a signed and completed Inheritance Tax Account Form IHT400 and any supplementary pages or supporting documents to HMRC.
  2. Write to HM Revenue and Customs Inheritance Tax Team, BX9 1HT providing a statement confirming that you are unable to release funds from the estate. The statement should include the following information:
  • All steps which will be taken to raise the funds to pay the tax should HMRC allow the grant on credit. This should be the quickest option available;
  • The maximum amount that can be paid immediately towards the Inheritance Tax before the grant can be issued; and
  • Put ‘grants on credit’ and the Inheritance Tax reference number at the top of the letter.


If HMRC agree to a grant on credit, the following requirements apply:

  1. The Executors are executed to pay as much of the Inheritance Tax as they can before receiving the grant.
  2. The Executors will be required to sign an undertaking. HMRC will consider each case on its own merits.
  3. If tax is to be paid following the sale of a property, there must be an accepted offer and an estimated date for exchange of contracts.

Interest and potential charges

HMRC will charge the Estate interest if the Inheritance Tax is NOT paid by the set due date. They may also place a ‘Notice of the Inheritance Tax Charge’ against any land or buildings in the estate at Land Registry. This will not hinder the land or building sales but buyers may request that the notice is removed before finalising the purchase.

Useful links

Applying for a grant on credit for Inheritance Tax –

IHT400 Notes – Guide to completing your Inheritance Tax account – HM Revenue and Customs