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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Penalties: contents

Introduction
  1. IHTM36001
    Introduction: Summary
  2. IHTM36002
    Introduction
  3. IHTM36010
    Introduction: Types of penalty
Late accounts
  1. IHTM36021
    Late accounts: When to seek a penalty?
  2. IHTM36022
    Late accounts: Accounts subject to a penalty
  3. IHTM36023
    Late accounts: Penalties chargeable
Procedures for taking penalties on late accounts
  1. IHTM36031
    Procedures for taking penalties on late accounts: Summary of procedures (chart)
  2. IHTM36032
    Procedures for taking penalties on late accounts: Who is responsible for requesting a penalty?
  3. IHTM36033
    Procedures for taking penalties on late accounts: Identifying late accounts
  4. IHTM36034
    Procedures for taking penalties on late accounts: Initial action in Compliance Group and PC&S
Penalty request letter
  1. IHTM36041
    Penalty request letter: General
  2. IHTM36042
    Penalty request letter: Standard letter
  3. IHTM36050
    Penalty request letter: No response to request for penalty
  4. IHTM36051
    Penalty request letter: Taxpayer claims reasonable excuse
  5. IHTM36052
    Penalty request letter: Formal penalty proceedings
  6. IHTM36053
    Penalty request letter: Settling the penalty enquiry
Reasonable excuse
  1. IHTM36061
    Reasonable excuse: General
  2. IHTM36062
    Reasonable excuse: Account lost or delayed in the post
  3. IHTM36063
    Reasonable excuse: Loss of financial records or other papers
  4. IHTM36064
    Reasonable excuse: Serious illness, absence or family problems
  5. IHTM36065
    Reasonable excuse: Bereavement
  6. IHTM36066
    Reasonable excuse: Not aware an account had to be delivered
  7. IHTM36067
    Reasonable excuse: Account, or the affairs of a deceased person, are too difficult
  8. IHTM36068
    Reasonable excuse: Pressure of work
  9. IHTM36069
    Reasonable excuse: Reasonable excuse: failure by an agent
  10. IHTM36070
    Reasonable excuse: Lack of information
  11. IHTM36071
    Reasonable excuse: Domicile outside the United Kingdom
Failure to deliver an account
  1. IHTM36081
    Failure to deliver an account: When can you seek a penalty?
  2. IHTM36082
    Failure to deliver an account: Penalties chargeable
Failure to deliver an instrument of variation where additional tax payable
  1. IHTM36091
    Failure to deliver an instrument of variation where additional tax payable: When can you seek a penalty?
  2. IHTM36092
    Failure to deliver an instrument of variation where additional tax payable: Penalties chargeable
Incorrect account, information or document
  1. IHTM36101
    Incorrect account, information or document: When is an account, information or document incorrect?
  2. IHTM36102
    Incorrect account, information or document: Types of penalty
  3. IHTM36103
    Incorrect account, information or document: S.247(1) penalty
  4. IHTM36104
    Incorrect account, information or document: S.247(3) penalty
  5. IHTM36105
    Incorrect account, information or document: S.247(4) penalty
  6. IHTM36106
    Incorrect account, information or document: S.248(1) penalty
  7. IHTM36107
    Incorrect account, information or document: S.248(2) penalty
  8. IHTM36108
    Incorrect account, information or document: Time limit for seeking penalties
Investigating incorrect accounts, information or documents
  1. IHTM36121
    Investigating incorrect accounts, information or documents: What to do when you have an incorrect account, information or document (chart)
  2. IHTM36122
    Investigating incorrect accounts, information or documents: When to consider penalties
  3. IHTM36123
    Investigating incorrect accounts, information or documents: Criteria for considering penalties
  4. IHTM36140
    Investigating incorrect accounts, information or documents: Who is responsible for taking up penalty enquiries
  5. IHTM36141
    Investigating incorrect accounts, information or documents: Establishing whether a penalty is appropriate (chart)
  6. IHTM36142
    Investigating incorrect accounts, information or documents: Initial action in Compliance Group
  7. IHTM36143
    Investigating incorrect accounts, information or documents: Consulting valuers
  8. IHTM36144
    Investigating incorrect accounts, information or documents: Risk assessing the potential penalty
Raising enquiries into incorrect accounts, information and documents
  1. IHTM36151
    Raising enquiries into incorrect accounts, information and documents: General approach
  2. IHTM36152
    Raising enquiries into incorrect accounts, information and documents: Initial questions
  3. IHTM36153
    Raising enquiries into incorrect accounts, information and documents: Undervaluations (general)
  4. IHTM36154
    Raising enquiries into incorrect accounts, information and documents: Undervaluations of land or buildings
Issuing leaflet IHT 13
  1. IHTM36156
    Issuing leaflet IHT 13: When and why is an IHT 13 issued?
  2. IHTM36157
    Issuing leaflet IHT 13: Draft introductory wording for opening an investigation into an undervaluation
  3. IHTM36158
    Issuing leaflet IHT 13: Draft introductory wording for opening an investigation into an omission
Dealing with taxpayer's replies
  1. IHTM36161
    Dealing with taxpayer's replies: General
  2. IHTM36162
    Dealing with taxpayer's replies: Do not make assumptions
  3. IHTM36163
    Dealing with taxpayer's replies: Inconsistency in taking up cases
  4. IHTM36164
    Dealing with taxpayer's replies: Claims that excess monetary deposits prevent a penalty being sought
  5. IHTM36165
    Dealing with taxpayer's replies: Noting up penalty time limits
  6. IHTM36166
    Dealing with taxpayer's replies: Death of person incurring a penalty
  7. IHTM36167
    Dealing with taxpayer's replies: Deciding the amount of penalty due
Calculating the penalty
  1. IHTM36171
    Calculating the penalty: Board's policy
  2. IHTM36172
    Calculating the penalty: Effect of criminal proceedings
  3. IHTM36173
    Calculating the penalty: How to calculate a penalty (chart)
  4. IHTM36174
    Calculating the penalty: General approach
  5. IHTM36175
    Calculating the penalty: De minimis limits for seeking a penalty
  6. IHTM36176
    Calculating the penalty: Culpable tax
  7. IHTM36177
    Calculating the penalty: Factors to take into account when abating a penalty
  8. IHTM36178
    Calculating the penalty: Penalties due on more than one asset
Disclosure
  1. IHTM36181
    Disclosure: What does disclosure mean?
  2. IHTM36182
    Disclosure: What to allow for disclosure?
  3. IHTM36183
    Disclosure: Additional abatement
Co-operation
  1. IHTM36191
    Co-operation: What factors to take into account?
  2. IHTM36192
    Co-operation: Genuine disagreements and 'external' intervention
  3. IHTM36193
    Co-operation: Lack of co-operation by an agent
Gravity
  1. IHTM36201
    Gravity: What to take into account?
  2. IHTM36202
    Gravity: Size of underpayment
  3. IHTM36203
    Gravity: Calculating the abatement
  4. IHTM36204
    Gravity: Minor offences
  5. IHTM36205
    Gravity: Middle range offences
  6. IHTM36206
    Gravity: More serious offences
  7. IHTM36207
    Gravity: Most serious offences
  8. IHTM36208
    Gravity: S.248 penalties
  9. IHTM36210
    Gravity: Normal penalty loadings impracticable
  10. IHTM36211
    Gravity: Penalty calculation form
Negotiating a penalty
  1. IHTM36221
    Negotiating a penalty: Summary of procedures (chart)
  2. IHTM36222
    Negotiating a penalty: When to seek to agree a penalty
  3. IHTM36223
    Negotiating a penalty: Prior approval for expected offer
  4. IHTM36224
    Negotiating a penalty: Informing the taxpayer
  5. IHTM36225
    Negotiating a penalty: Establishing culpability
  6. IHTM36226
    Negotiating a penalty: Establishing fraud
Taxpayer does not make the expected offer
  1. IHTM36231
    Taxpayer does not make the expected offer: General
  2. IHTM36232
    Taxpayer does not make the expected offer: Normal negotiating limits
  3. IHTM36233
    Taxpayer does not make the expected offer: Culpability disputed
  4. IHTM36234
    Taxpayer does not make the expected offer: Culpability disputed but taxpayers prepared to make an acceptable offer
  5. IHTM36235
    Taxpayer does not make the expected offer: Payment of less than the expected offer made
  6. IHTM36236
    Taxpayer does not make the expected offer: Refusal to co-operate
  7. IHTM36237
    Taxpayer does not make the expected offer: Insufficient means
  8. IHTM36240
    Taxpayer does not make the expected offer: Request for time to pay
Instalment offers
  1. IHTM36251
    Instalment offers: General
  2. IHTM36252
    Instalment offers: Considering formal instalment arrangements
  3. IHTM36253
    Instalment offers: Re-calculating the penalty
  4. IHTM36254
    Instalment offers: Payments exceeding 2 years
  5. IHTM36255
    Instalment offers: Method of payment
  6. IHTM36256
    Instalment offers: Early settlement
Settling the penalty
  1. IHTM36261
    Settling the penalty: Summary of procedures (chart)
  2. IHTM36262
    Settling the penalty: Acceptable offer made
  3. IHTM36263
    Settling the penalty: Checking the completed offer
  4. IHTM36264
    Settling the penalty: Correcting errors in the offer
  5. IHTM36265
    Settling the penalty: Taxpayer forwards own letter of offer
  6. IHTM36266
    Settling the penalty: Delay in accepting the offer
  7. IHTM36267
    Settling the penalty: Letter of acceptance
  8. IHTM36268
    Settling the penalty: Administrative procedures
Improving future compliance
  1. IHTM36271
    Improving future compliance: General approach
  2. IHTM36272
    Improving future compliance: Joint property
  3. IHTM36273
    Improving future compliance: Completing enquiries before delivering an account
  4. IHTM36274
    Improving future compliance: Personal representatives employing agents
  5. IHTM36275
    Improving future compliance: Valuations of land
  6. IHTM36276
    Improving future compliance: Provisional estimates of value
  7. IHTM36277
    Improving future compliance: Funding problems of tax due on delivery of the IHT400
  8. IHTM36280
    Improving future compliance: Repayment of penalty
  9. IHTM36281
    Improving future compliance: Repayment of tax
Fraud
  1. IHTM36291
    Fraud: What is fraud?
  2. IHTM36292
    Fraud: Examples of fraud
  3. IHTM36293
    Fraud: Dealing with suspected fraud
  4. IHTM36294
    Fraud: Role of Special Compliance Office
Negligence
  1. IHTM36301
    Negligence: What is negligence?
  2. IHTM36302
    Negligence: Who must you show to be negligent?
  3. IHTM36303
    Negligence: Onus of proof
Innocent Error
  1. IHTM36311
    Innocent error: Dealing with claims of innocent error
  2. IHTM36312
    Innocent error: Not aware of omitted asset or gift
  3. IHTM36313
    Innocent error: Did not know that asset or gift had to be declared
  4. IHTM36314
    Innocent error: Misinformed by a third party
  5. IHTM36315
    Innocent error: Agent's failure
  6. IHTM36316
    Innocent error: Advice given by IHT
  7. IHTM36317
    Innocent error: Information supplied to another part of HMRC
  8. IHTM36320
    Innocent error: Miscalculation
Letters of offer
  1. IHTM36331
    Letters of offer: Importance of correctness
  2. IHTM36332
    Letters of offer: Drafting the letter (general)
  3. IHTM36333
    Letters of offer: Checklist
  4. IHTM36334
    Letters of offer: Using precise terms
  5. IHTM36335
    Letters of offer: Consideration
  6. IHTM36336
    Letters of offer: Duties included
  7. IHTM36337
    Letters of offer: Taxpayer's default
  8. IHTM36338
    Letters of offer: Interest and penalties
  9. IHTM36339
    Letters of offer: Amount of the offer
  10. IHTM36340
    Letters of offer: Date of payment
  11. IHTM36341
    Letters of offer: Excluded duties
  12. IHTM36342
    Letters of offer: Signature
  13. IHTM36343
    Letters of offer: Tax year
  14. IHTM36344
    Letters of offer: Interest clause
  15. IHTM36345
    Letters of offer: Instalment offers (general)
  16. IHTM36346
    Letters of offer: Instalment offers (examples)
Standard letters of offer
  1. IHTM36351
    Standard letters of offer: Specimen form of offer involving penalties only
  2. IHTM36352
    Standard letters of offer: Specimen form of offer involving tax, interest and penalties
  3. IHTM36353
    Standard letters of offer: Specimen form of offer involving penalties only, payable by instalments - England, Wales and Northern Ireland cases
  4. IHTM36354
    Standard letters of offer: Specimen form of offer involving tax, interest and penalties, payable by instalments - England, Wales and Northern Ireland cases
  5. IHTM36355
    Standard letters of offer: Specimen form of offer involving penalties only, payable by instalments - Scottish cases
  6. IHTM36356
    Standard letters of offer: Specimen form of offer involving tax, interest and penalties, payable by instalments - Scottish cases
Reports to Tax Administration Advice(TAA)
  1. IHTM36361
    Reports to Tax Administration Advice (TAA): General
  2. IHTM36362
    Reports to Tax Administration Advice (TAA): Form of report
Recording penalties
  1. IHTM36371
    Recording General
  2. IHTM36372
    Recording Database for non-COMPASS penalties
  3. IHTM36373
    Recording Creating a penalty record on COMPASS
  4. IHTM36374
    Recording Opening a penalty record on COMPASS
  5. IHTM36375
    Recording Enquiry not required
  6. IHTM36376
    Recording Closing a penalty record on COMPASS
  7. IHTM36377
    Recording Entering data on the penalties database
Accounting procedures
  1. IHTM36391
    Accounting procedures: Bringing payment of penalty to account
  2. IHTM36392
    Accounting procedures: Payment not received by due date
  3. IHTM36393
    Accounting procedures: Defaulting taxpayer
  4. IHTM36394
    Accounting procedures: Repaying a penalty
Human Rights and penalties
  1. IHTM36401
    Human Rights and Introduce
  2. IHTM36402
    Human Rights and Article 6 advice
  3. IHTM36403
    Human Rights and What you should say in a letter
  4. IHTM36404
    Human Rights and What you should say at a meeting
  5. IHTM36405
    Human Rights and What to do if the taxpayers refuses to co-operate
Public Funding for penalty hearings
  1. IHTM36411
    Public Funding for penalty hearings: When is Public Funding available?
  2. IHTM36412
    Public Funding for penalty hearings: When you must issue the Public Funding Leaflet
  3. IHTM36413
    Public Funding for penalty hearings: Public Funding and s.245 penalties
  4. IHTM36414
    Public Funding for penalty hearings: Requests for Public Funding leaflets