Inheritance Tax Act 1984 section 212

Powers to raise tax

Section 212 sets out the powers available to a person who is liable for inheritance tax on the value of property to raise the funds needed to pay that tax, including by selling or mortgaging the property concerned.

• A person liable for inheritance tax on property (other than the transferor or a liable spouse/civil partner under section 203) may raise the tax by selling, mortgaging, or placing a terminable charge on the property, whether or not the property is vested in them.
• A person with a limited interest in property who pays the tax attributable to that property is entitled to a charge over the property, as if the tax had been raised by means of a mortgage to them.
• Money held on the trusts of a settlement may be used to pay the tax attributable to the value of any property comprised in that settlement and held on the same trusts.
• References to tax in this section include interest on tax and any costs properly incurred in connection with the tax.