Personal representatives of a deceased who are paying inheritance tax on land and property in instalments should take care when thinking about making any overpayments at any stage.

Overpayments do not serve to reduce the amount of all the remaining instalments, but are simply held on account by HMRC and are applied against the instalments and interest as they fall due, much as if you had paid promptly. There is no interest credit given and the same amount of interest will be payable as if there had been no overpayment.

Also, don’t forget that if your instalment payment is late, HMRC will charge interest on it and on the interest connected to it!