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HMRC internal manual

Inheritance Tax Manual

Corrective account (C4): when is an account required (England, Wales and Northern Ireland)?

Strictly speaking a C4 should be completed in all cases where there is an amendment to the account (but see the guidance at IHTM31023). But you can usually accept amendments we are told about by letter or even over the phone, in straightforward cases. This applies even where the taxpayer or agent makes a voluntary disclosure of an asset that was not included in the IHT400.

You should only insist on a C4 where:

  • we are repaying money but we have any doubts that the repayment is due.
  • there are lots of amendments or they are complicated, or
  • more tax is payable after a Form Cap A 5C (IHTM05083) has been sent to us.
  • assets that were given an estimated value in a reduced account (IHTM10471) are redirected to a chargeable beneficiary (IHTM10478).

If you have to ask for a form C4 and there is unpaid tax not in dispute, you might want to:

  • raise provisional calculations, or
  • suggest making a payment on account.