Loan to pay Inheritance Tax

Has anyone recently obtained a loan to pay an inheritance tax liability? I need to raise approximately £1.6 million.

If so, who did you use and how long did it take to arrange?

Many thanks

Claire Muirhead
Farnfields Solicitors

In my recent experience, banks might only consider bridging loans for IHT if the deceased or the executors have a personal account at the bank concerned. Even then, you may not be successful. It is possible to obtain a “grant on credit”. You have to write to the IHT office, setting out all the efforts you have made to obtain a loan and the responses you have received from the potential lenders and confirm whether any pension lump sums can be released. HMRC should accept this and issue a receipted IHT421 on your undertaking that you will pay the IHT as soon as possible after issue of the grant.

Guy Birtwistle
Fishers Dewes