Get your Inheritance Tax payment reference number. Fill in form IHT423 and send it to the bank, building society or investment provider.How to Complete Forms; Decedent's Estate Account. Directions for Completing Account Form in a Decedent Estate. Find out which gifts count towards the value of the estate, how to value them and work out how much Inheritance Tax may be due. I'm assuming I have to pay income tax of about ÂŁ270 on this amount before I make the final distribution to the beneficiaries. Any questions or concerns regarding your current tax bill payment must be directed to your local treasurer's office. You can deduct a part of your medical and dental expenses, and amounts you paid for certain taxes, interest, contributions, and other expenses. Tax can be paid directly from the bank account of the person who died. To ask for this you will need to complete Form IHT423.