Abatement of legacies and IHT

I am dealing with an estate where there will be no residue left. Under the will the house is left to chargeable beneficiaries but IHT free, chattels the same and then some pecuniary legacies to various chargeable beneficiaries again stated to be free from IHT.
The estate was taxable. My query is where is the IHT paid from?
I know that specific legacies are paid before pecuniary ones so for usual debts etc its the pecuniary ones that will abate first but with all legacies being stated as free from tax does that still mean that the specific ones are all paid in full and just the pecuniary ones will abate? (there is sufficient in the estate for the specific legacies to be paid in full) or will the IHT have to be apportioned between the specific and pecuniary legacies?
I keep talking myself into different answers.
thank you for any help!

IHT is a testamentary expense – s.211 IHTA 1984 – and, therefore primarily payable out of residue. The wording “free of tax” is therefore redundant (so far as the incidence of IHT is concerned).

As the IHT is payable out of residue, the liability will follow the same route as other payments out of residue – causing the general legacies to abate before any specific legacies.

In the situation described, it would appear the specific gifts – property and chattels – may be satisfied in full with the cash legacies abating having borne the IHT and other estate expenses remaining after residue has been fully exhausted.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Thank you very much. That has confirmed my original thinking.