IHT423 & NS&I

uksal

We have a small (approximate 5%) balance left to pay for Inheritance Tax. It is the sum we requested NS&I to send directly.

NS&I state they are currently only dealing with correspondence received before 19 March, our letter was received by them on 22 April. (sent via tracked letter so we know this is the date they received it.)

Inland Revenue state they will not issue the probate number until 100% of the tax is paid as we did not select to pay in installments. (The full tax amount is not due until 31 August 2026)

We have attempted to stop the request from NS&I and make the payment from private funds, but they claim they can only act on letters received - if we write now the letter will doubtless not be even dealt with until another 6 weeks, which will be after the IHT423 is looked at and presumably monies sent.

So we find ourselves in a government created catch22 where one government department (those dealing with IHT) won't release the probate reference number until another government department (NS&I) get their act together and make the payment.

We have paid over £140k in tax already well before the deadline (the deceased had several investments that paid using the IHT423 forms prior to probate to help with this amount thankfully), We simply do not understand what reason the Inland Revenue have in preventing us from proceeding with probate.

So are there any people here who can suggest what we might do to move this situation forward. The IHT forms were initially delayed by NS&I being the last to provide the valuations needed to finalise the IHT400.

pcgtron

Nsandi are a nightmare at the moment. Sorry to hear you're going through that.

I had probate for granted on the 14th March, and since then have managed to sell 6 different lots of shares, cash in an offshore life insurance bond, cash in investment isas as well, but I'm still waiting for for nsandi to cash in investments and pay into the executor account.

The only option I can see is to pay the money to hmrc to obtain probate, then try to stop the nsandi payment going through. If it does pay hmrc after the iht has been paid, you can always claim it back from hmrc although I can see that this is not ideal

Sooz1966

Similar @pcgtron. I got Probate on 3rd March. Every financial transfer was completed weeks ago, and this week we completed the sale of dad's bungalow, but still waiting on PBs to be paid out. In the meantime, we continue to accumulate winnings...