Taxation (UK) · The liabilities arising on chargeable lifetime transfers and on the death of an individual

IHT Payment Dates and Who Is Liable to Pay

Updated 11 October 2026 · Fact-checked

Lifetime tax on a chargeable lifetime transfer is due 30 April after the tax year if made 6 April to 30 September, otherwise 6 months after the end of the month of transfer. Tax on death, and extra tax on gifts, is due 6 months after the end of the month of death. Donors, trustees, donees and personal representatives pay depending on the transfer.

Understand IHT Payment Dates and Who Is Liable to Pay

Inheritance tax (IHT) has two questions after you calculate the tax: when must it be paid, and who must pay it. TX-UK tests both, often in a Section B objective test case and sometimes in a short part of a Section C answer.

There are three payment events. First, tax on a chargeable lifetime transfer (CLT), such as a gift to a trust, at the time it is made. Second, additional tax that arises when the donor dies within seven years of a CLT or a potentially exempt transfer (PET). Third, tax on the death estate.

The due dates depend on the event. For lifetime tax, the date depends on when in the tax year the CLT was made. For anything triggered by death, the date is simply six months after the end of the month of death. Interest runs on unpaid tax from the due date.

Liability depends on the event too. On a lifetime CLT, the donor is normally primarily liable, or the trustees if they agree to pay. On a failed PET, the donee is primarily liable. On the death estate, the personal representatives are liable for tax on the estate. If the person primarily liable does not pay, others are secondarily liable. These include the personal representatives of the donor, the trustees and the persons who benefit from the property.

Remember that a PET is only taxed if the donor dies within seven years. Until then, no tax is due and nothing is payable. Taper relief reduces the tax on a gift, not its value. It applies only where the gift is taxable, and only to transfers made more than three years before death. The rates are 20% for lifetime transfers and 40% on death, with a nil rate band of £325,000.

Key rules to remember

Lifetime CLT made 6 April to 30 September: Due date = 30 April in the following tax year; Example: CLT on 10 June 2025 is due 30 April 2026.
Lifetime CLT made 1 October to 5 April: Due date = 6 months after the end of the month of the transfer; Example: CLT on 20 November 2025 is due 31 May 2026.
Additional tax on death within 7 years (CLT or PET): Due date = 6 months after the end of the month of death; This applies to both tax on failed PETs and extra tax on CLTs.
Tax on the death estate: Due date = 6 months after the end of the month of death; Interest runs from this date even if the estate is not yet fully administered.
Tax rates (as provided in the exam): Nil rate band £325,000; lifetime rate 20%; death rate 40%; The residence nil rate band is £175,000 and applies only to the death estate.
Taper relief (reduction in the tax): 3-4 years 20%; 4-5 years 40%; 5-6 years 60%; 6-7 years 80%; There is no reduction if death is within 3 years. It reduces the tax, not the value.
Primary liability: CLT: donor (or trustees). PET: donee. Death estate: personal representatives; Trustees pay additional death tax on a CLT. Secondary liability falls on others if the primary person does not pay.

How to solve IHT Payment Dates and Who Is Liable to Pay questions

Use this method for any question asking when IHT is due or who must pay it.

1Identify the event: a lifetime CLT, a PET that has become chargeable, extra tax on a CLT because of death, or the death estate.
2Write down the relevant date: date of transfer for lifetime tax, date of death for everything else.
3For a CLT, check which half of the tax year the transfer falls in (6 April to 30 September, or 1 October to 5 April).
4Apply the correct rule: 30 April following for the first half, six months after the end of the month for the second half, and six months after the end of the month of death for death-related tax.
5Count to the end of the month. Write the actual date, such as 30 April 2027, not just 'six months'.
6Name the primary person liable: donor or trustees for a CLT, donee for a PET, personal representatives for the estate.
7Name any secondary liability if the question asks what happens if the tax is not paid.
8If a calculation is needed, apply the nil rate band, rates and taper relief from the exam tables before stating the payer and date.

Quickest way: Date and payer in 20 seconds

When to use it: Use this in Section A or Section B objective questions where only the date or the liable person is needed.

Ask: lifetime or death? If death, the date is the end of the sixth month after the month of death.
If lifetime CLT, look at the month. April to September means 30 April next year. October to March means six months after the end of that month.
Pick the payer: PET means donee, CLT means donor or trustees, estate means personal representatives.
Eliminate options that use the date of the gift for death tax, or that put tax on a PET at the date of gift.

Common mistakes in IHT Payment Dates and Who Is Liable to Pay

Counting six months from the date of death rather than from the end of the month of death.
Students shorten the rule to 'six months after death'.
Fix: Move to the end of the month of death first, then add six months. Death on 15 March gives 30 September.
Using 30 April for every lifetime CLT.
Students remember the April date and forget it applies only to transfers from 6 April to 30 September.
Fix: Check the month. October to March transfers are due six months after the end of the month of transfer.
Saying tax is due on a PET when the gift is made.
Students confuse PETs with CLTs.
Fix: A PET has no tax when made. Tax arises only on death within seven years and is due six months after the end of the month of death.
Making the personal representatives liable for tax on a failed PET as the main payer.
Students link death with personal representatives for every IHT charge.
Fix: The donee is primarily liable for a failed PET. Personal representatives are secondarily liable only if it is unpaid.
Applying taper relief to the value of the gift.
The word 'relief' suggests reducing the amount transferred.
Fix: Compute the tax at 40% on the excess over the available nil rate band first, then reduce that tax by the taper percentage.
Thinking interest only starts once probate is granted.
Students link payment to the administration timetable.
Fix: Interest on unpaid estate IHT runs from six months after the end of the month of death, regardless of the grant.

Worked examples

Example 1

Anna made a chargeable lifetime transfer to a trust on 10 June 2025. Ben made a CLT to a trust on 20 November 2025. State the due date for lifetime IHT on each transfer and who is primarily liable.

Show the solution

Anna's transfer is on 10 June 2025. That is between 6 April and 30 September, so the due date is 30 April in the following year: 30 April 2026.
Ben's transfer is on 20 November 2025. That is between 1 October and 5 April, so the due date is six months after the end of November 2025.
The end of November 2025 plus six months is 31 May 2026.
For each CLT, the donor is primarily liable unless the trustees agree to pay the tax. If the donor does not pay, the trustees are secondarily liable.

Answer: Anna's tax is due 30 April 2026. Ben's tax is due 31 May 2026. In each case the donor is primarily liable, or the trustees if they agree to pay.

Example 2

Carl made a PET of £500,000 to his daughter in August 2021. He had made no earlier transfers and annual exemptions are ignored. Carl died on 14 October 2026. Calculate the IHT on the PET, state the due date and say who is primarily liable. Assume the full nil rate band of £325,000 is available.

Show the solution

The PET was made in August 2021 and Carl died on 14 October 2026. The gap is more than five years but less than six, so taper relief is 60%.
Taxable amount above the nil rate band: £500,000 − £325,000 = £175,000.
Tax at the death rate of 40%: £175,000 × 40% = £70,000.
Apply taper relief of 60%. The tax payable is 40% of £70,000, which is £28,000.
Due date: six months after the end of October 2026, which is 30 April 2027.
The donee, Carl's daughter, is primarily liable. If she does not pay, Carl's personal representatives are secondarily liable.

Answer: IHT on the PET is £28,000, due 30 April 2027. The donee is primarily liable, with the personal representatives secondarily liable. The PET also uses up the nil rate band against the death estate.

Exam tips

Always write the date in full (for example 30 April 2027). A vague 'six months later' will not earn the mark.
In objective test cases, read the date of the transfer carefully. Distractor options often use the wrong half of the tax year.
Link liability to the transfer type: donor or trustees for CLTs, donee for PETs, personal representatives for the estate.
In calculation answers, show the nil rate band, the 40% death rate and the taper percentage as separate lines. Then state the due date at the end.
Remember that the exam gives the nil rate band, rates and taper table, so memorise the dates and the liable persons instead.

Practice questions from The liabilities arising on chargeable lifetime transfers and on the death of an individual

IHT Payment Dates and Who Is Liable to Pay in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

ACCA Strategic ProfessionalIHT Payment, Interest, Liability and Tax Planning

IHT Payment Dates and Who Is Liable to Pay: frequently asked questions

When is inheritance tax due after someone dies?

Tax on the death estate is due six months after the end of the month of death. Interest runs on any unpaid tax from that date. Death on 15 March means the due date is 30 September.

Who pays IHT on a lifetime gift?

On a chargeable lifetime transfer, the donor is normally primarily liable, or the trustees if they pay. On a potentially exempt transfer that becomes chargeable on death, the donee is primarily liable. Others are secondarily liable if the tax is not paid.

Are personal representatives liable for IHT?

Yes. They are liable for the IHT on the death estate and pay it from the estate assets. They can also be secondarily liable for tax on lifetime gifts made by the deceased if the person primarily liable does not pay.

Is IHT due on a PET when it is made?

No. A PET is only taxed if the donor dies within seven years. The tax is then due six months after the end of the month of death. Taper relief may reduce it if death was more than three years after the gift.

What is the payment date for a CLT made in January?

A CLT made between 1 October and 5 April is due six months after the end of the month of the transfer. For a January transfer, that is 31 July of the same year.