PAYMENT IN CASE OF DEATH
Capital transfer tax chargeable on holder's death17
1
Where, on the death of a person to whom the terms of an agreement applied or who was the holder of any certificate (not being a certificate in respect of which it is shown to the satisfaction of the Director of Savings that the deceased holder had no interest therein otherwise than as a trustee), the aggregate value of the specified assets (hereinafter defined) exceeds £25,000, the Director of Savings shall, before making any payment under the agreement or in respect of the certificate, or before transferring the terms of the agreement or the certificate, require the production of a statement from the Commissioners of Inland Revenue to the effect either that no capital transfer tax, being capital transfer tax chargeable on the death of such person, is payable in respect of the agreement or certificate or that any capital transfer tax, being capital transfer tax chargeable on the death of such person or holder, so payable has been paid:
Provided that the production of such a statement shall not be required—
a
where the payment or transfer is made to or as directed by:—
i
the deceased person's legal personal representative acting under probate or letters of administration granted by any court in the United Kingdom, or
ii
the Public Trustee, the Official Receiver, or the trustee in bankruptcy of the estate of the deceased person; or
b
where the deceased person was at the time of his death domiciled in the Isle of Man or the Channel Islands; or
c
where the beneficial interest in the agreement or certificate in question has passed to the spouse of the deceased person in circumstances in which capital transfer tax is not chargeable.
2
In this Regulation the expression “the specified assets” means the following assets (not being assets in respect of which it is shown to the satisfaction of the Director of Savings that the deceased person or holder had no interest therein otherwise than as a trustee):—
a
the total amount which would have been repayable (if repayment had been demanded) at the date of the death of the person in respect of all agreements recorded in his name alone or in the case of a trustee in his name jointly with any other trustee, or certificates recorded in his name alone or in his name jointly with any other person;
b
the total amount which would have been repayable (if repayment had been demanded) at the date of the death of the person in respect of all national savings certificates, war savings certificates, or index-linked national savings certificates recorded in his name alone or in his name jointly with any other person;
c
the total amount (including interest) which, at the date of the death of the person, stands to the credit of all accounts in his name alone, or in his name jointly with any other person, in the National Savings Bank;
d
all stock and securities registered on the National Savings Stock Register at the date of the death of the person in his name alone or in his name jointly with any other person (not being stock or securities recorded on the parts of the National Savings Stock Register kept by trustee savings banks);
e
any amount repayable and any other sum payable in respect of all premium savings bonds recorded in the person's name;
f
the total amount (including any bonus or interest) which would have been repayable (if repayment had been demanded) at the date of the death of the person in respect of all savings contracts entered into by him and registered by the Director of Savings under a contractual savings scheme certified by the Treasury in accordance with section 415(2) of the Income and Corporation Taxes Act 1970.
3
For the purposes of this Regulation, the value of the stock and securities referred to in paragraph (2)(d) of this Regulation shall be—
a
in the case of stock which is of a description corresponding to stock or securities transferable in the books of the Bank of England, the market value thereof at the date of the death of the holder; and
b
in all other cases, the nominal capital amount thereof.