Inheritance Tax Act 1984 section 233

Interest on unpaid tax

Section 233 sets out when interest begins to accrue on unpaid inheritance tax and the rules governing how that interest is calculated and treated.

• Unpaid inheritance tax carries interest at the rate prescribed under section 178 of the Finance Act 1989 once the relevant payment deadline has passed
• The payment deadline depends on the type and timing of the chargeable transfer, but is generally six months after the end of the month in which the transfer was made, with a special rule for lifetime transfers made between 6 April and 30 September
• Where HMRC accept property in satisfaction of tax and the property is valued as at the date of the offer rather than the date of acceptance, interest on the tax satisfied may stop running from the offer date
• Interest payable on unpaid inheritance tax cannot be deducted when calculating income, profits or losses for any tax purposes