Inheritance Tax Act 1984 section 213

Refund by instalments

Section 213 deals with the right of a person who owes a refund of inheritance tax to another person to make that refund by instalments rather than as a lump sum, mirroring the original instalment terms.

• Where someone has paid inheritance tax to HMRC that was, or could have been, paid by instalments, and they are entitled to recover all or part of it from another person, the rules on instalment refunds apply.
• The person who owes the refund is entitled to repay the amount by the same instalments, and with the same interest, as those by which the tax could have been paid to HMRC.
• This right to repay by instalments applies automatically unless the two parties agree otherwise between themselves.
• The provision covers both cases where tax was actually paid by instalments and cases where the taxpayer had the option to pay by instalments but chose not to exercise it.