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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Debt and return pursuit: Insurance Premium Tax: Effects of death or other incapacity on recovery action

Death of a Sole Proprietor

There is no provision in IPT for the death of a sole proprietor or other individualliable to pay IPT. If you are advised of a death, notify the local IPT officer and the CCU(IPT).

Death of a Partner

The normal effect of the death of a partner is that the partnership is dissolved (s.33(1) of the Partnership Act 1890). Notify the local IPT officer and CCU, as deregistrationmay be appropriate.

When a partner leaves a partnership that carries on regardless, his liability for IPT as apartner is calculated to the day that we receive notification of his leaving (not the dayon which he left). But, if a partner dies or is made bankrupt we calculate his partnershipliability to the date he left the partnership, regardless of when we are notified of hisleaving (S.36 (3) of the Partnership Act 1890).

The procedure is as for recovery of a VAT debt.

Death of a company director

The procedure is the same as for recovery of a VAT debt (see DMBM530330).

Death of key personnel

The procedure is the same as for recovery of a VAT debt (see DMBM530340).

Physical incapacity of a registered person

In IPT there is no provision for the physical incapacity of a sole proprietor or otherindividual liable to pay IPT.

The procedure is the same as for recovery of a VAT debt (see DMBM530350).

Mental incapacity of a registered person

The procedure is the same as for recovery of a VAT debt (see DMBM530360).