IHT is being paid by IOP. A larger sum than the instalment due will be available to apply against the IHT due. Can a substantial cash payment be applied before the instalment arrangements finish? We do not want any excess funds to sit on deposit as interest will continue to accrue on the total IHT due in the estate.
In this case the annual instalment is £150,000. The estate may have £400,000 available. Can £250,000 be paid towards the full IHT so that the outstanding amount is recalculated?