Payment by instalments: interest relief on business assets

[sharpener]

[Re-posting in this forum, orginally a subsidiary query to a posting under CGT]

My mother died last December leaving amongst other assets 293k in an AIM portfolio of which 193k was held for > 2yrs and so qualified for business property relief. As the non-qualifying 100k is more than 20% of the total HMRC allow payment by instalments on the IHT due, and at present there is no interest to pay on the outstanding balance (see IHTM 30363).

However they told me last week that interest is now likely to be payable w.e.f. 1 October this year. Is it correct that the interest relief on IHT on business assets is being withdrawn? I have not been able to find anything very specific on the HMRC web site (even in the 32 page Explanatory Memorandum to SI 2032), only the changes to the formula for calculating interest rates.

TIA

[maths]

I am not aware that FA 2009 withdraws the ability for IHT to be paid by instalments.

As my other posting indicated FA 2009 merely amends the rules re computing the interest charge (if any).

[sharpener]

Thanks maths

This began with HMRC advising me on the phone that the outstanding instalments would attract interest from 1 October. However from reading pp53-4 of the IHT400 Notes I had thought that because the IHT due by instalments is on unquoted (AIM) shares held for less than 2 yrs it fell within the scope of IHTM30216, the last sentence of which says "In this case the shares will qualify for interest free instalments" (see also IHTM 30363).

When I rang them again today they claimed not to know about this so I have written (with references). As it is worth 35k payable over 10 years, if you know of any reason why I should abandon this quest I would be pleased to know!

TIA