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HMRC internal manual

Inheritance Tax Manual

Monitoring the excepted estates rules: automatic discharge

All persons personally liable for any IHT due in respect of an excepted estate are automatically discharged from liability at the end of the prescribed period (IHTM06042) and any charge for tax on any assets comprised in the estate is removed.

Automatic discharge will not apply

  • if the taxpayers or agents have given us false information or not told us all the material facts
  • if it later comes to light that there is further property which causes the excepted estates conditions to be breached
  • if within the prescribed period a notice in writing is issued to the personal representatives (IHTM05012) asking them for further information.

This discharge also applies to trustees (IHTM06044) and has the same affect as formal clearance.