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Written question asked by Jonathan Hinder (Labour) on Thursday, 14 May 2026, in the House of Commons. It was due for an answer on Monday, 18 May 2026. It was answered by Dan Tomlinson (Labour) on Wednesday, 20 May 2026 on behalf of the Treasury.

Inheritance Tax: Exemptions

Question

To ask the Chancellor of the Exchequer, what consideration she has given to the potential merits of extending the exemption of assets liable for inheritance tax payable in yearly instalments to investments in companies in administration or liquidation.

Answer

Inheritance tax on shares in companies in administration or the process of liquidation at the time of a transfer, such as a death, may qualify for payment in annual instalments if they meet the criteria in s228 of Inheritance Tax Act 1984.

When paying in annual instalments, the outstanding balance of tax only becomes payable in full immediately if an interest or part of an interest in a business is sold. A distribution in cash made to shareholders on a liquidation is the winding up of a company, rather than a sale, and so the facility to pay in instalments is not lost in those circumstances.

Secondary information

Type
Written question
Reference
1373
Session
2026-27
Subjects
Company liquidations Exemptions Inheritance tax
Link
View this Written question on www.parliament.uk