Paying IHT due on gifts via DPS

Hello, I've a question about paying the inheritance tax on due on gifts and the procedure for doing this. I've done a lot of reading to try to find the answer but haven't been successful, so if you can direct me to where to look, or who to speak to, that would be really helpful too. The scenario I'm trying to understand is below, the actual figures are made up but they are in the right ratios. My father will owe about £500,000 in IHT I will owe £200,000 based on gifts he's given me My sister will owe £300,000 based on gifts he's given her So the total we owe between us is in IHT is £1,000,000 My father has assets in various institution that participate in the HMRC DPS scheme for paying IHT totalling around £1,500,000 which we intend to use to pay the IHT. My sister and I will are the sole beneficiaries of my father's will, and are both the executors of the will too. When my father passes away we'll get the IHT reference to pay tax against. Questions: Will HMRC issue my sister and me a tax demand with the same IHT reference as my father's that we have to pay against, or will there be new separate references? If it's the same reference, are there sub references to distinguish my sister's payment and mine? If it's the same reference, and there are no sub references, how will HMRC know the money has come from my sister and me? If it's the same reference, and there are no sub references, can we instruct the different institutions who participate in the DPS to pay enough money that covers the full IHT liability for all of us? (Do HMRC mind if the money actually comes directly from my sister and me or my father's assets, especially as we are both the beneficiaries anyway?) Any help in understanding how this all works would be gratefully received. Thanks!!

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

Thanks, I feared you'd say that. I've written in before, but got no reply, hence trying here. Which one of the documents in the IHT manual (https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual) should I be reading to find the answers to my questions?

Hi ,
 

As this forum is for personal tax, you will need to contact the Inheritance Tax helpline on 0300 123 1072 for advise on which forms to complete .  Thank you .