IHTM31667 - Repayments: IHT Direct Payment Scheme cases

Where payment on an estate has been made using the IHT Direct Payment Scheme (DPS) ( IHTM30184), you must ensure that a grant has been obtained before making any repayment.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

In order to identify all estates that have made the initial payment using DPS, Cashiers enter a COMPASS ( IHTM31101) note indicating that payment was made by DPS.

You can find whether a grant has been obtained

• in England and Wales from the Calendar of Grants,
• in Northern Ireland from the IHT421 returned from the Probate Office with the date of grant, or
• in Scotland from the C1 received from Sheriff Clerks indicating that Confirmation has been granted.

Indicate on Sect 83 ( IHTM31660) that the grant has been obtained.

Repayment where no grant has been obtained

If a repayment is due and you are unable to establish whether a grant has been obtained, telephone the executors/agents to establish the present position.

If the grant has not been extracted, you should explain that you can only refund the money to the deceased's bank account from which the payment was made.

• If they want the money repaid to the executors, this must be deferred until a grant is extracted.
• If they are content for the money to go back to the deceased's account, you should follow the normal procedures to make a repayment by CHAPS ( IHTM31663) - irrespective of the amount - except do not obtain the signed letter of authority. You must obtain and use only the sort code and account number from the payment advice held by Cashiers. Where no grant has been obtained, under no circumstancesshould you repay the money to the executors or to an account nominated bythe executors.