People who have difficulty paying tax due on an inheritance can now benefit from a simplified payment credit system that allows them to pay in instalments or to defer paying the tax. In order to take advantage of deferred or split payments you first need to apply to your tax office.
Inheritance tax is normally payable when the succession is declared. However new rules, which came into force at the beginning of February, mean that inheritors will be able to request this delay and receive a response within two months – previously, this took four months. They then have four months (instead of two months previously) to put together a “dossier de garanties” showing how the tax will be paid. Payments can then now be made in three instalments over the period of a year. In certain circumstances this can be increased to seven instalments payable over three years. The period to propose additional guarantees (if needed) after receiving the inheritance has also been increased from one month to two.
Interest is due on the payment, however, which last year was at 1.7%; 2024 rates have not yet been announced. For any unagreed late payments this year’s interest rate is 2.4% per annum.
You can find more information on paying inheritance tax on the impôts website and also a clear summary on the Service Public website
If you have any other questions relating to inheritance tax please write to us at info@franco-british-network.com