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HMRC internal manual

Inheritance Tax Manual

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HM Revenue & Customs
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Reduced account: dealing with a reduced account

The reduced account should only be used when there is no tax to pay. There are separate rules for handling the reduced account when carrying out the NCA sift. The instructions on this and following pages should be followed by caseworkers in Service and Compliance when they see a reduced account on review.

In general, you should review a reduced account in the normal way, remembering that not all the schedules will be present. You should limit your enquiries to those parts of the estate that are chargeable or potentially chargeable. If a schedule for a chargeable aspect is missing you should ask the taxpayer to complete it. Calling for missing schedules is not in itself an enquiry (IHTM29011).

There will be occasions when a reduced account is received even though the conditions (IHTM10472) for delivering it are not met. But in these cases it will not always be necessary for you to ask the personal representatives to supply all the information that makes up a full account. The next page (IHTM10476) includes some examples of how you should approach this problem.