Assessing: deposits: more than one calculation
- two or more calculations are made at the same time, and
- there is interest due on each,
the general rule is that you should apply the deposit against tax first and then against interest charges.
Two calculations are being issued on the free estate
- one for NIOP (IHTM31012); tax £2,000, and
- one for IOP; tax £1,000.
Interest is running. The taxpayer placed £3,000 on deposit, but after the due date.
|Tax on NIOP||£2,000|
|Interest to date of deposit||£60|
|To be paid||£60|
|Tax on IOP||£1,000|
|Interest to date of deposit||£30|
|To be paid||£30|
Interest has been restricted on both calculations since the amount of the deposit (£3,000) exactly matches the tax due.
If the deposit only partly covers the tax due
If the taxpayer or agent has not given instructions on how the deposit should be used, apply it in the way which would be most beneficial for them.
If you are assessing IOP only
- apply the deposit firstly against ordinary IOP, and then
- against any IOP (WIR).