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IHTM28002 | Liabilities: general background on deducting liabilities

From HM Revenue & Customs · Inheritance Tax Manual

The general rule is that we allow a deduction for debts that the deceased actually owed at the date of death.

A debt for Inheritance Tax purposes is one that can be legally enforced (IHTM28383) and is either:

  • imposed by law, or

  • a debt for which consideration (IHTM28382) was received.

More details on the legal background to deducting liabilities can be found at IHTM28381.