Commissioners for the Reduction of the National Debt - Miscellaneous Accounts
Donations and Bequests Account
Section 8 of the National Debt Act 1823 created this account which, as its title implies, is used to handle donations and bequests from public-spirited members of the public for the purpose of reducing the National Debt. Both cash and securities are received, but only UK Government securities, that are a direct charge on the National Loans Fund, may be accepted directly onto the account and subsequently cancelled. Other securities are taken first on the Commissioners' Suspense Account, from where they are sold and the proceeds are then transferred to the Donations and Bequests Account. Bequests and other gifts are handled by the Treasury Solicitor who conducts all negotiations with executors and trustees and passes the final cash or securities proceeds to CRND.
UK Government bonds received as a gift to the nation are cancelled in the corresponding amount. Cash gifts are used to purchase, and periodically cancel, gilts from the wider market, thus reducing the amount of outstanding debt accordingly. Any gilt may legally be bought for subsequent cancellation, but the present policy is to apply sums for debt reduction to the purchase of the highest-yielding gilt on a relative value basis.
The combined annual report and accounts of the miscellaneous CRND accounts can be found here.