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HMRC have announced that, on 5 November 2007, they will be changing the process for making the initial payment of IHT where payment is made by cheque. From that date, cheques will need to be sent, with a bank approved payslip carrying an IHT reference, to HMRC's cashiers in Nottingham.
This means that it will be necessary to contact HMRC to obtain an inheritance tax reference and the payslip before submitting form IHT200. This new process should also be used to obtain a reference number before using the direct payment scheme.
HMRC say that they are making this change because of inheritance tax payments moving from Nottingham to Accounts Office at Shipley, and also to improve security around the process of registering inheritance tax taxpayers before an account is delivered.
A reference number can be obtained online through the HMRC website, or by post, using form D21. On receipt, HMRC will allocate a reference to the estate and send details of the reference together with a payslip and a pre-addressed envelope to the applicant by post. The aim is to reply to all requests for a reference within five working days for online requests and within 15 working days for postal requests.
If the tax is being paid by cheque, the payslip should be completed and placed with the cheque (and nothing else) in the pre-addressed envelope, and send your payment to the cashiers at Nottingham. Form IHT200 and supporting papers should be sent either to the Nottingham or Edinburgh office — depending on whether applying for probate or confirmation.
HMRC suggest that the IHT reference number should be applied for at least three weeks before delivery of form IHT200 is expected.
The online option will be available on www.hmrc.gov.uk/cto/iht.htm from 22 October. It will be possible to download form D21 from the HMRC website, or obtain a paper copy from the forms orderline on 0845 30 20 900; option 1.
If there is no inheritance tax due, there is no need to apply for a reference; the completed form IHT200 etc. should be sent to HMRC in the normal way.
