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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Assessing: calculation principles: examples of when calculations should not be withdrawn

If calculations have been issued and the amount of tax has not changed, the calculations should not be withdrawn.

Here are some examples of the most common circumstances and what you could do instead:

Calculation has been issued - payment now received

Do not withdraw the calculation. If the money has not been matched to the calculation on SAGE send form Cas 15 (IHTM31852) to Accounts, Nottingham to match the money.

Calculation has been issued - not enough money received

You should phone or write to the taxpayer or agent to remind them of the amount due and ask when the outstanding amount will be paid (IHTM38023).

Calculation has been issued - excess money received

You should mark the calculation as paid - the balance will be shown as a deposit on SAGE.

Calculation has been issued - further interest is due

Calculate the additional interest due (IHTM31540) and tell the taxpayer or agent what is due. When you receive payment, pay the original calculation and issue a new calculation, using the ‘Adjustments box’ (IHTM31864) and deposit box to collect the additional interest.

Repayment calculation issued

You should not withdraw a repayment calculation until the RSO team have confirmed that the original payable order has been cancelled

First Instalment Option Property (IOP) calculation issued but all tax is then paid

Where the first IOP calculation for one tenth has been issued but all the tax due on the IOP has been paid you should:

  • pay the first calculation for one tenth, then
  • raise a new calculation for the remaining nine tenths, using the rest of the money on deposit to pay it.

If you need to discuss any particular case in more detail you should contact Accounts, Nottingham (IHTM31912).