National Savings & Investments: Bereavement Claims

I have committed to helping bereaved families avoid disproportionate disruption and administrative costs that could result from the inheritance tax consequences of rectifying previous tracing errors. To achieve this I am confirming today that there will be a full inheritance tax exemption for the holdings of the remediation population affected by the NS&I tracing error which are returned to the estates to which they rightly belong. To further ease the administration of estates, the personal representatives or executors will not be liable for any income tax ordinarily due in their role on interest accrued before death or in the administration period. HMRC is working with NS&I to ensure that executors, personal representatives and beneficiaries do not incur any unnecessary administrative burdens or costs where tax is not due.

Beyond individual redress, NS&I has strengthened its bereavement processes to ensure these tracing errors do not reoccur. While this has driven an increase in processing times, an additional 100 people have been hired to ensure this is temporary. NS&I is also exploring broader improvements to the bereavement journey, including alignment with cross-Government services such as Tell Us Once.

As I committed to the House, Sir Jim Harra, acting chief executive of NS&I, is leading a wider review into the background to the tracing problem and what lessons must be learned. This will report before the summer recess and be shared with the Chairs of the Treasury and Public Accounts Committees. The Treasury has also started the process to recruit a permanent chief executive.

Further information for anyone who believes they or loved ones may have been affected is available on the NS&I website and its contact centre is open seven days a week.

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