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HMRC internal manual

Inheritance Tax Manual

Accountability: time limits

The normal time limit for delivering an account is

  • twelve months from the end of the month in which the transfer is made, or
  • if later, three months from the date when the accountable person first becomes liable for the tax.

The rule is modified for

  • transfers that arise on death (IHTM10811)
  • potentially exempt transfers (PETs) (IHTM10821)
  • gifts with reservations (GWRs) (IHTM10824)
  • relevant property trust charges that arise on or after 6 April 2014 (IHTM10836)

Penalties (IHTM36021) may be chargeable if an account is not delivered within the statutory time limit. There are also penalties for failing to deliver an account (IHTM36081).