65+ Bonds can be cashed in without penalty after the death of a sole, or last surviving Bond holder.
Information about the tax treatment of 65+ bonds is available in the brochure for the bonds, the terms and conditions under which the bonds are issued and in the annual statement issued to bond holders.
The income earned on the bonds is taxable and tax at the basic rate will be deducted when interest is added to a bond. This applies equally to any bond interest paid after the bond holder’s death. There is no capital gains tax charge when one of these Bonds is cashed in either by the original purchaser or the purchaser's legatee.