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HMRC internal manual

Inheritance Tax Manual

Assessing: repayments: authorised payee

We must make sure that repayments are made out to authorised people or organisations only. You cannot make a repayment to anyone other than all of the legal personal representatives (LPRs) (IHTM05012), unless you have a signed repayment authority clearly stating who the repayment should be made out to.

The repayment authority may be in the form of

  • a statement at box 23 of the IHT400 (IHTM10021)
  • a statement on form IHT100 (IHTM10501)
  • a statement on the corrective account
  • form Sect 66A.

Checks

You should make sure that all the appropriate LPRs have signed the authority, and check that the signatures match those on the original account (IHTM10011).

If:

  • it is claimed that not all of the appropriate persons are able to sign the authority, or
  • the signatures are significantly different

you should consult your manager or the RSO team.

If the repayment is to be made to someone other than the LPRs, such as an acting solicitor, and any one of the LPRs has signed an authority, you can accept the authority as valid, as long as:

  • that LPR does not work for the intended recipient organisation,
  • the authority is made in the capacity of LPR
  • the authority is made during the administration period (usually one year from death).

No specific repayment authority

If there is no specific authority you can repay directly to

  • a bank or solicitor, acting as sole LPR
  • a personal LPR, when there are no others acting
  • an executor’s/administrator’s account, made out to either all of the LPRs personally or to ‘Executors of Mr X deceased’.

In this last case, you must ensure that there is an appropriate executor’s or administrator’s account to which the repayment order can be paid. If you are in any doubt, resolve the matter with the taxpayer or their agent, preferably by phone. If there is no such account, send them a form Sect 66A to complete.

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If there is a change of details

You need to make sure that we have the appropriate authority from the LPRs to repay to any new agent.

Similarly, if the bank or payee details have changed you must make sure you have the appropriate authority.

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IHT Direct Payment Scheme (DPS) cases

The LPR’s authority may not be enough where the payment in an estate has been made by the DPS (IHTM30184). Follow the further instructions at (IHTM31667).