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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Grants on credit: action after the IHT421 or C1 is issued

Once the IHT421 or C1 is issued it is important that you make sure that the Personal Representatives (PRs) or agents act in accordance with the undertaking and that tax is paid promptly. If the case is being dealt with in Compliance this responsibility will fall on the Compliance caseworker. In all other cases, Service Technical Support will be responsible for monitoring the agreement.

If the terms of the undertaking are not met you should consider more formal recovery action straightaway. At the very least, the minimum amount payable should be determined by a Notice of Determination (NOD) (IHTM38281).

Occasionally, despite HMRC issuing the IHT421 or C1 the PRs do not take out a grant. For example, this might be because there is an ongoing dispute and others have entered a caveat which prevents a grant being issued.

You should establish the reasons for the delay. If the delay in taking out the grant appears unreasonable you should talk to Litigation to consider whether a NOD is appropriate.