Payment using the deceased’s National Savings

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How do I pay using the deceased's National Savings Investments?

The tax on some of the assets has to be paid before the issue of a grant of representation. To help you to do this you can, if you wish, pay the tax using the deceased's National Savings Investments, such as

  • National Savings Bank accounts
  • National Savings Certificates
  • National Savings Capital, Deposit or Income Bonds
  • Children's Bonus, FIRST option or Pensioners Guaranteed Income Bonds
  • Premium Savings Bonds
  • Save as You Earn contracts and Year plans

Please note that it may take up to four weeks from the receipt of your application until the money is transferred to HM Revenue & Customs. For this reason, we suggest that you do not use this method of payment if the grant of representation is needed urgently.

How do I find the value of the National Savings?

You should write to National Savings to obtain a letter giving

  • the value of the deceased's investments at the date of death
  • the National Savings Reference

Which National Savings Office should I write to?

For most National Savings Bank Accounts, National Savings Capital Bonds and Children's Bonds or FIRST Option Bonds

National Savings & Investments
Glasgow G58 1SB

DX 501754
Cowglen

For National Savings Certificates, Save as you Earn contracts and Year Plans, Cash Mini ISA or TESSA ISA

National Savings & Investments
Durham
DH99 1NS

DX 69290
Durham 11

For Premium Bonds, National Savings Income Bonds, Guaranteed Equity Bonds and Pensioners Guaranteed Income Bonds

National Savings & Investments
Blackpool
FY3 9YP

DX 712430
Blackpool 3

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How can I telephone or e-mail National Savings?

National Savings general enquiry line: 0845 964 5000 (7.00 am to midnight 7 days a week)
E-mail: customer enquiries

What do I need to send to HMRC Inheritance Tax?

First you need to obtain an Inheritance Tax reference number. You can do this by applying for an IHT reference online using the 'do it online' link, or by using the form D21 Application for an Inheritance Tax reference (PDF 40K). You should apply for a reference at least three weeks before you expect to make the payment.

When we receive your reference request we will send you, by post, a note of your reference number

Please do not send us original passbooks or certificates. If you wish to use any of the qualifying investments to pay the tax due, after you have received your InheritanceTax reference, please provide

  • a letter detailing the investments to be used
  • official letters stating the value of those investments

together with the inheritance tax account IHT200 and form D18 to our Pre-Grant section.

  • If you are applying for a grant in England, Wales or Northern Ireland, send them to our address in Nottingham.
  • If you are applying for Confirmation in Scotland you should send these letters with the completed inheritance tax account IHT200 and C1 inventory form to our Edinburgh address.

Please remember to quote your Inheritance Tax reference on all correspondence with us.

What happens next?

When we receive the forms and letters we contact National Savings asking for the money to be transferred to HM Revenue & Customs. This may take up to four weeks. If the amount transferred is enough to cover the tax due and

  • you are a personal applicant applying for a grant in England, Wales or Northern Ireland we will send the receipted D18 direct to the Probate Registry so they can issue the grant.
  • you are a practitioner applying for a grant in England, Wales or Northern Ireland we will send the receipted D18 to you so you can apply for a grant.
  • you are applying for Confirmation in Scotland we will receipt the C1 and return it to you, so that you can apply for Confirmation from the sheriff clerk or commissary clerk.

What if there is additional tax due?

If any additional tax is due after the money has been transferred to HM Revenue & Customs we will tell you how much you must pay and how to pay it.

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