Premium Bonds and IHT400 form

rustwood

When entering the details of bond holdings one is asked to list the bonds along with their numbers.  I am dealing with £46,000 worth of bonds held in about 110 groups (reinvested prizes etc.)
I presume that they don't expect us to list them all on the form? 
Please has anyone had a similar experience?  My instinct is to attach the NSI list of holdings as a printout.

poppystar

I’m pretty sure that is what I did. No way did I want to type out three A4 pages of numbers! Copying the list also shows that they are the bonds of the deceased. 

Mothman

When sorting my late mother's estate I also just printed out the list of holdings from the NS&I website and attached it to the form. The return went through without query.

retroman62

It's worth noting also that, if you hold onto the premium bonds for a maximum of 12 months after death, any prizes need to be declared. Although they are tax-free, it does alter the valuation of the estate. That is at any rate my understanding of the position following a conversation I had with HMRC last week. 

mark1956

retroman62 said:

It's worth noting also that, if you hold onto the premium bonds for a maximum of 12 months after death, any prizes need to be declared. Although they are tax-free, it does alter the valuation of the estate. That is at any rate my understanding of the position following a conversation I had with HMRC last week. 

Are you sure about that? surely IHT is based on the value of the estate on the date of death, how can that include estate income after death? Estate income after death is subject to income tax (with no personal allowance). My question is 'do premium bond prizes won by the estate remain free of income tax?'  I cant find an answer online. It would be an interesting question if the estate wins one of the big prizes!

Keep_pedalling

retroman62 said:

It's worth noting also that, if you hold onto the premium bonds for a maximum of 12 months after death, any prizes need to be declared. Although they are tax-free, it does alter the valuation of the estate. That is at any rate my understanding of the position following a conversation I had with HMRC last week. 

Not correct, the estate is valued at time of death, anything coming into the estate (apart from repaid debts) is classed as income but PB prizes are not subject to income tax so nothing to declare on wins in those 12 months.

Crater

As a matter of interest, I am not able to log in - as a previous POA, now executor, my relative's log in was tied to mine and is no longer valid for their holdings. I have tried talking to NS&I, on the grounds that on the front of every letter sent out about bond wins, it says "... Or you can call us and we'll send you one (the list). The helpful gentleman I spoke to was very puzzled by this, kept asking if we had had a valuation (we have), and did we get a list (no, they don't just send them out). He is going to request someone off-line to send us a list after many puts on hold ... he's done his best! Maybe I should have asked HMRC first, but whoever you ask, they are never sure what happens at the other end!  And NS&I, among all savings providers, have a special status and three boxes of their very own on IHT406.