Assessing: repayments: IHT Direct Payment Scheme cases
Where payment on an estate has been made using the IHT Direct Payment Scheme (DPS) (IHTM30184), you must ensure that a grant has been obtained before making any repayment.
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You can find whether a grant has been obtained
- in England and Wales - from the Calendar of Grants,
- in Northern Ireland - from the IHT421 returned from the Probate Office with the date of grant, or
- in Scotland from the C1 received from Sheriff Clerks showing that Confirmation has been granted.
You should always check that the grant has been obtained, before you issue a repayment.
Repayment where no grant has been obtained
If a repayment is due and you are unable to establish whether a grant has been obtained, you should ask the taxpayer or agents. If there is no grant, you should explain that you can only refund the money to the bank account from which the payment was made.
Where money has been paid from the deceased’s bank account under the direct payment scheme, it must be repaid to that account. You should follow the normal procedures to make a repayment by CHAPS (IHTM31663) - irrespective of the amount. You do not need to get a signed letter of authority. You must only use the sort code and account number from the payment advice held by Cashiers. Where no grant has been obtained, under no circumstances should you repay the money to the executors or to an account nominated by the executors.