Probate Interest Calculator
Instantly calculate interest accrued on late Inheritance Tax payments, delayed legacies, or estate funds. Ensure accurate probate accounting.
Calculate Probate Interest
Enter the principal amount, applicable annual interest rate, and the time period. The calculator instantly reveals the total interest accrued for your probate accounts.
Probate Interest Calculator
Calculate simple interest for estates, IHT, and legacies.
Understanding Probate Interest
Key concepts for executors and beneficiaries
Late Inheritance Tax (IHT)
IHT is due 6 months after the end of the month of death. HMRC charges simple interest on any unpaid amount from the due date until the date of full payment.
Delayed Legacies
If a specific or pecuniary legacy is not paid within the ‘executor’s year’ (12 months post-death), the beneficiary is usually entitled to simple interest from that 12-month mark.
Simple vs. Compound
Probate interest (especially for HMRC and statutory legacies) is almost always calculated as simple interest, meaning interest is not charged on previously accrued interest.
Estate Bank Accounts
Conversely, if estate funds are held in an interest-bearing account during probate, the estate earns interest, which must be declared on the estate’s income tax return.
Common Probate Interest Scenarios
Typical interest rates and rules applied to common probate situations. Always verify current HMRC rates before finalising accounts.
| Scenario | Typical Rate | Interest Type | Starts From |
|---|---|---|---|
| HMRC Late Payment Rate | Simple | 6 months after end of month of death | |
| Will specified rate (or statutory) | Simple | 12 months after date of death (Executor’s Year) | |
| Residuary Estate (Statutory) | Simple | 1 year after date of death | |
| Bank/Building Society Rate | Compound (usually) | Date funds are deposited into estate account | |
| HMRC Overpayment Rate | Simple | Date the overpayment was made to HMRC |
Probate Interest FAQ
Answers to the most frequently asked questions about calculating interest during the probate process.
HMRC charges simple interest on late Inheritance Tax payments from the due date (usually 6 months after the end of the month of death) until the date the tax is fully paid. The interest rate is set by HMRC and is subject to quarterly review.
Yes. If a legacy is delayed beyond the ‘executor’s year’ (12 months from the date of death), the beneficiary is typically entitled to simple interest on that amount, unless the will explicitly states otherwise. The rate is often dictated by the will or statutory rules.
For HMRC Inheritance Tax and most statutory legacy interest calculations, simple interest is used. This means interest is calculated only on the original principal amount, not on previously accrued interest. Estate bank accounts, however, may pay compound interest.
HMRC interest rates are reviewed quarterly and can change. You should always verify the current late payment interest rate on the official GOV.UK website before finalising any probate accounts or making payments.
Yes. If you overpay Inheritance Tax, HMRC will repay the overpayment along with simple interest. The interest is calculated from the date the overpayment was made until the date HMRC issues the refund.