IHTM05201 - Compensation schemes: Infected Blood Estates Interim Payment Scheme and The Horizon Conviction Redress Scheme (England, Wales & Northern Ireland)

Background

The Infected Blood Estates Interim Payment Scheme (IBEIPS) is a UK-wide scheme, administered on behalf of the UK Government by the administrators of the UK Infected Blood Support Schemes (IBSS) (and in Scotland by the Scottish Ministers in conjunction with the administrators of the Scottish Infected Blood Support Scheme). They provide interim payments of £100,000 to the estates of those deceased infected beneficiaries who were registered with an existing UK IBSS or previous support schemes run by the Alliance House Organisations before 17 April 2024 for deaths not yet recognised.

The Horizon Conviction Redress Scheme (HCRS) was set up to compensate postmasters whose wrongful convictions were overturned in bulk through legislation due to errors in the Horizon IT system.  On 24 May 2024, convictions for postmasters in England, Wales, and Northern Ireland were quashed after the Post Office (Horizon System) Offences Act 2024 received Royal Assent. Scotland passed a similar bill on 13 June 2024 to overturn the convictions of Scottish postmasters.

Applying for a grant of probate

If the victim is deceased, the administrators of this Scheme require probate to be issued before compensation is paid from the scheme. There is a simplified procedure for Personal Representatives (PRs) that are applying for a grant of probate in order to pursue a claim for compensation payment.

These processes may not account for all possible situations. The process will differ depending on:

  • Whether the estate meets the criteria for an excepted estate (IHTM06011) for Inheritance Tax (IHT); and
  • When the death occurred.

Process for Excepted Estates

Deaths on or after 1 January 2022 and if the estate meets the criteria for an excepted estate.

If the estate is considered to meet the criteria for an excepted estate, the estate’s legal or PRs can simply declare this on the probate application. PRs do not need to fill in a HMRC form.

For Northern Ireland only  the PR must give details of the assets they need a Grant of Representation for and extra information for Inheritance Tax on the Estate Summary Form NIPF7

Deaths between 1 January 1982 and 31 December 2021 and if the estate meets the criteria for an excepted estate

For all HCRS/IBEIPS deaths between 1 January 1982 and 31 December 2021, if the estate meets the excepted estate criteria, the Personal Representative(PR) should complete the most recent IHT205 form, (IHT205 (2011 version)).

In normal circumstances, if the value of an estate is nil at box D of the IHT205, the applicant would be asked to complete a full IHT estate account on form IHT400. However, we do not require PRs to fill in IHT400, if the estate would otherwise be an excepted estate for IHT.

Instead, if the victim died on or before 31 December 2021 and the value of the estate is nil, the PR should insert text for IBEIPS “Compensation payment due Infected Blood Estates Interim Payment” and for HCRS “Compensation payment due the Horizon Conviction Redress Scheme” in box 13 of the IHT205. They will not be required to complete full IHT400 account. The PR can apply for probate and send the IHT205 (2011) form and supporting documents directly to HMCTS (for England and Wales) or Northern Ireland Courts and Tribunal Services (NICTS) for Northern Ireland.

Deaths before 31 December 1981 for IBEIPS only

PRs need to complete and sign a declaration (IHTM05202) and send the declaration together with the Grant application, directly to HMCTS (for England and Wales) or to NICTS (for Northern Ireland).

For all estate which are not excepted estates

If an estate does not meet the criteria for an ‘excepted estate’, regardless of when the death occurred, PRs should submit a full IHT400 account and pay any IHT due on the residual value of the estate after the value of the IBEIPS/HCRS payment has been deducted.

For England & Wales, HMRC will provide a unique code after the IHT400 has been processed, and the PR will need use this to apply for probate on the HMCTS digital portal. 

For Northern Ireland PRs should complete from IHT421 with the form IHT400 account. If all is in order, HMRC fill in their part of Schedule IHT421 and send it back to PR and they can apply for probate.

Claimants already holding a grant of probate or letters of administration

Where claimants already hold a grant of probate or letters of administration, we understand that this is sufficient for the scheme to make payment to the person shown as legally entitled to receive it.