§ The Paymaster General (Dawn Primarolo)
In proceedings in Finance Bill Standing Committee on 25 June we announced that work was in hand to allow inheritance tax to be paid out of an estate before probate is granted. We have now reached agreement in principle with the British Bankers Association and the Building Societies Association on a direct payment scheme for inheritance tax. Broadly, where the deceased person has sufficient funds to their credit, participating institutions will be ready to transfer funds direct to the Inland Revenue to pay the inheritance tax due. We are now working with the associations to finalise the detail of the processes concerned, and help their members prepare for the launch. The Government hope to see the maximum possible take-up of this welcome scheme, which will start later this year.