Assessing: repayments: overview of preparing a repayment
The guidance on this page gives a brief guide to the questions you need to consider and the steps involved in making a repayment of Inheritance Tax. More detail about the different steps in the process is given in the rest of this section of guidance.
- Consider whether you can deal with the repayment as a within COMPASS offset repayment (IHTM31683). If you can, you should prepare the offset repayment calculations and send copies to the taxpayer or agent.
- If you cannot make the repayment within COMPASS you should check whether you have established an authorised payee. If not, you should find out who the authorised payee is before going any further.
- Once you know you have an authorised payee your next step will be to consider whether the repayment is more than £150,000. If it is, you will need to obtain the additional information for an external CHAPS repayment (IHTM31663) before going any further
Next, you should prepare:
- any calculations,
- a form Sect 6 and Payable Order Request Form (PORF) on SEEs
- an undated letter to the taxpayer or agent
- Send the calculations, Sect 6 and letter to the appropriate reviewing officer to check.
- The reviewing officer will quality check the repayment. If the repayment is £125,000 or more the quality check will be carried out by an SO or above. If it is more than £250,000 the check will be carried out by a Grade 7 or above. If there are any problems with the repayment the reviewing officer will return the file and repayment to the caseworker.
- If the repayment passes the quality check the file will be passed to the Repayment Security Team to check. If they are happy with the repayment, the Repayment Security Officer (RSO) will issue the letter to the taxpayer or agent and authorise the PORF. Accounts Office Cumbernauld will then issue the payable order. If there are any problems the RSO will return the repayment to the manager.