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Paying Inheritance Tax using the deceased's National Savings

If the deceased had National Savings investments - such as Premium Bonds or Guaranteed Income Bonds - you can use these to pay any Inheritance Tax due on their estate.

What are National Savings investments?

There are many different types of National Savings products, including:

  • National Savings Bank accounts
  • National Savings Certificates
  • National Savings ISAs (Investment Savings Accounts)
  • Guaranteed Income Bonds
  • Premium Bonds

How do I find out what the investments are worth?

To find out the value of each type of National Savings investment at the date of death you'll need to fill in a form and send it to the National Savings and Investments office.

You can contact them to ask for the form or download it from their website by following the links below. They will write back to you and give you the details.

You’ll need to send a copy of this letter to HM Revenue Customs (HMRC) with your Inheritance Tax forms to pay any Inheritance Tax due.

How to pay using National Savings Investments

It can take up to four weeks for the money to be transferred to HMRC, so this is not the best method to use if the grant of probate (or confirmation in Scotland) is needed urgently.

Provided by HM Revenue and Customs

  • Source Direct Gov
  • Last Updated: 06 Jan 2012