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Treasury

Answer

Dr. Julian Lewis: To ask the Chancellor of the Exchequer what assessment he has made of the extent to which (a) the public and (b) banks and building societies have been made aware of the recent agreement negotiated by him for the release of sufficient assets of deceased individuals to pay inheritance tax on their estates in order to permit probate to be granted; and if he will make a statement on the steps taken to publicise that agreement. [200272] Dawn Primarolo: The Direct Payment Scheme was introduced on 31 March 2003 in order to help streamline the process for paying inheritance tax. The Inland Revenue worked closely on the design with the British Bankers' Association (BBA) and the Building Societies' Association (BSA) to produce a straightforward process. The scheme allows participating financial institutions to transfer funds belonging to a deceased person directly to the Revenue and eliminates the need for administrators to obtain funds from outside the estate in order to secure probate. Members of the BBA and the BSA were given details of the scheme before it was launched. It was announced by press release and on the Inland Revenue website. Everyone dealing with a deceased person's estate who will need to pay IHT liabilities is given full details of the scheme and how to use it in the guidance notes they receive with their IHT return form. Callers to the Probate and IHT help line are also given guidance on the scheme when discussing payment of IHT. Information on the scheme is still available on the Revenue website at; http://www.inlandrevenue.gov.uk/ howtopay/iht-direct-pay-scheme.htm. Since the scheme was introduced there has been a steady increase in take up, with approximately 4,000 payments a year made through this route. The Inland Revenue monitor the scheme closely and have invited feedback and have stayed in contact with the BBA and the BSA.

Secondary information

Type

Written question

Reference

200272; 428 c16W

Session

2004-05

Subjects

Banks Administration of estates Building societies Inheritance tax Payments Probate

Link

View this Written question on www.publications.parliament.uk