IHT Direct Payment Scheme - can we use shares?

FishpondsFilter

My uncle died recently leaving a property worth ~£700k and a portfolio of shares worth ~£250k.  His bank balance was relatively small and there are no cash savings accounts.  

I've seen online that the IHT Direct Payment Scheme can be used to pay IHT using shares, and the HMRC help desk agreed that was possible and suggested I refer the registrars to form IHT423.  But the form asks for bank account numbers and sort codes, which obviously isn't relevant, and speaking to the registrars for the various shareholdings (ComputerShare, Equiniti and Link) they all deny any knowledge.

Have ChatGPT and the IHT help desk got it wrong, and in fact I need to take out a loan after all (to pay the IHT, so that I can get probate, so that I can sell the shares, so that I can pay off the loan)?  Or if it can be done, how do I set about arranging it?

Keep_pedalling

This came up in another thread a couple of days ago, I also thought this possible but it does not seem so, so it looks like you will need to go down the instalment route.

FishpondsFilter

Keep_pedalling said:

This came up in another thread a couple of days ago, I also thought this possible but it does not seem so, so it looks like you will need to go down the instalment route.

Thanks, Keep-pedalling. I'll follow the instalment route.

FYI I've heard separately from an Investment Manager that if investments are held in certificated form (as they were in my Uncle's case) it's not possible to sell in order to settle probate, but that it may be possible if they're held through corporate nominees.

Marcon

FishpondsFilter said:

My uncle died recently leaving a property worth ~£700k and a portfolio of shares worth ~£250k.  His bank balance was relatively small and there are no cash savings accounts.  

I've seen online that the IHT Direct Payment Scheme can be used to pay IHT using shares, and the HMRC help desk agreed that was possible and suggested I refer the registrars to form IHT423.  But the form asks for bank account numbers and sort codes, which obviously isn't relevant, and speaking to the registrars for the various shareholdings (ComputerShare, Equiniti and Link) they all deny any knowledge.

Have ChatGPT and the IHT help desk got it wrong, and in fact I need to take out a loan after all (to pay the IHT, so that I can get probate, so that I can sell the shares, so that I can pay off the loan)?  Or if it can be done, how do I set about arranging it?

You can use gilts: https://www.gov.uk/paying-inheritance-tax/british-government-stock