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HMRC internal manual

Inheritance Tax Manual

Payment methods: payment out of tax repayments

If the taxpayers ask for a repayment of income or other tax to be used in satisfaction of an IHT liability you will need to provide the Inspector of Taxes with a copy of the taxpayer’s letter, plus the file reference. There are essentially two methods by which money can be transferred and it may help to draw the attention of the Inspector to them.

  • The first is by using the IVT system. We are not on the system but monies can be sent via FAO Worthing, the IVT collection number being 856).
  • The second is by a non-bankable payable order [NBPO] issued to Capital Taxes. The Inspector should in both instances include their EDP (

IHTM31211) and should also ensure that our reference number is readily apparent.

(The same method of transfer can also be used when money is sent to the Inspector in error.)

Any procedural problems should be referred to Banking Operations Nottingham (Inheritance Tax) (IHTM31912) for advice.