Inheritance Tax Loan London
Access fast funding to cover inheritance tax liabilities — helping you preserve the family estate without unnecessary delays.
How an Inheritance Tax Loan Works
When you apply for an IHT loan, we arrange for a lender to pay HMRC the inheritance tax owed. Once the IHT is paid, an application can be made for a Grant of Probate. Following probate, the estate’s assets are released, allowing the loan to be repaid from those funds. Because the loan is settled from the estate rather than from you personally, there are no monthly repayments during the term.
Benefits of an Inheritance Tax Loan
- No credit checks
- No monthly repayments
- No requirement for a Will
- No personal liability
- No charge over the property
How can an inheritance tax loan help avoid probate delays?
If you need help settling an IHT bill, arranging the funding can be expensive and time-consuming. Until the IHT is settled, you can’t obtain the Grant of Probate and the estate cannot progress to distribution. This creates “locked” estates that cannot move forward until the IHT has been paid.
An Inheritance Tax Loan can prevent your estate becoming locked by enabling you to settle the IHT bill quickly, helping you avoid delay or penalty charges from HMRC.
Who can apply for an inheritance tax loan and how does it help executors?
An IHT loan can provide financial relief to executors (or personal representatives where there is no Will) who are facing a large inheritance tax bill. Taking out an executor’s loan to pay IHT benefits you as the executor or personal representative, and also allows the estate’s beneficiaries to receive their inheritance in good time.
An IHT loan is available to anyone who needs to pay UK inheritance tax. Unlike a traditional bank loan, there are no credit checks and no monthly repayments, so income and affordability do not need to be assessed. This means you can apply for a bridging loan to settle inheritance tax regardless of whether you own property or have a strong credit rating.
How can I get an advance on my inheritance?
When you borrow against your inheritance, you can access an advance of up to 60% of the sum due to come to you from the estate. There are no repayments to make — the loan, including rolled-up fees and interest, is settled directly from the estate.
What can you use an Inheritance Advance for?
If you’re waiting for an inheritance to come through, it can sometimes be a long, drawn-out process. On average it takes a year to gain access, and in some situations that may be too long to wait – especially if you need to deal with pressing financial concerns. An advance gives you the option to receive some of your inheritance early, and the funds can be used to help with all manner of things, such as:
- Can I use my inheritance advance to finance home improvements?
- Can inheritance advances be used for holidays or travel?
- Can I buy a new car with an inheritance advance?
- Is it possible to put down a deposit on a house using inheritance funds?
- Can an inheritance advance help cover medical, veterinary, or education costs?
What are the key benefits of an Inheritance Advance?
- No credit checks
- No monthly repayments
- No requirement for a Will
- No personal liability
- No charge over the property
- Available pre Grant of Probate
Inheritance tax loans, also known as IHT loans or executor loans, provide financial help to cover inheritance tax liabilities. They bridge the gap when IHT must be paid before an estate’s assets can be liquidated. Executors can use an IHT loan to pay inheritance tax, ensuring the bill is settled on time and penalties are avoided. With the loan secured against and repaid from the estate, executors can manage the tax obligation and keep probate and estate distribution moving smoothly.
Let’s talk about how we can help you…
Whether you’re looking for fast funding or need expert advice, we’re here to help. Reach out today and get started with a simple, hassle-free enquiry — just click below to begin.
Inheritance Tax Loan FAQs
What is an inheritance tax loan?
An inheritance tax loan is short-term finance that pays the HMRC inheritance tax bill on an estate before probate is granted. Because IHT usually has to be paid before the Grant of Probate is issued — and before the estate's assets can be released — the loan breaks that deadlock. It's repaid directly from the estate once assets are freed, so there are no monthly repayments.
Why do I have to pay inheritance tax before probate?
HMRC generally requires the inheritance tax to be paid before it issues the Grant of Probate, but the money to pay it is often locked inside the estate that probate would release. This creates a "locked estate". An IHT loan settles the bill so probate can proceed and the assets can be distributed.
How much can I borrow with an inheritance tax loan?
Typically up to 60% of the value due to come to you from the estate, and up to £2 million. The exact amount depends on the estate's assets and how clear the route to releasing them is.
Do I need to have been granted probate first?
No — probate does not need to have been granted. The loan is designed to be taken out before probate, so it can pay the IHT that unlocks the process. A solicitor does need to be acting for the estate.
What does an inheritance tax loan cost?
Rates start from 1.25% per month, with an arrangement fee of up to 2%. Interest and fees are usually rolled up and settled from the estate at the end, so there is nothing to pay monthly during the term.
Are credit checks or income assessments needed?
No. Because the loan is secured against and repaid from the estate rather than from you personally, your income, affordability, and credit history are not assessed in the way a personal loan would be.
Who repays the inheritance tax loan?
The estate repays it. Once probate is granted and the estate's assets are released, the loan — including rolled-up fees and interest — is settled directly from those funds before the remaining inheritance is distributed to beneficiaries.
Ready to Get Started
Get a fast, no-obligation quote for your inheritance tax loan. Tell us about the estate and the sum due, and we’ll come back to you the same day with an indication of terms.
