Income Tax Act 2007 section 403

Loan to pay inheritance tax

Section 403 provides income tax relief on interest paid on loans taken out by personal representatives to pay inheritance tax that is due when they deliver their account to HMRC.

• Relief applies to interest on loans used by personal representatives to pay inheritance tax that is due on delivery of their account under section 226(2) of IHTA 1984
• Relief also extends to interest on a replacement loan used to repay an earlier qualifying loan under this section
• A written statement from an HMRC officer is sufficient evidence of the amount of inheritance tax due and any details relevant to its calculation
• References to inheritance tax in this section include any interest payable on that tax