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HMRC internal manual

Inheritance Tax Manual

Failure to deliver an instrument of variation where additional tax payable: penalties chargeable

The following penalties are chargeable where there is a failure to deliver an instrument of variation.

Under sub-section (1A) of S.245A inserted by FA 2002

  • up to £100 for failure to meet the requirements of IHTA84/S.218A
  • a further penalty of up to £60 for every day after the day on which the failure was declared by the Court or First-tier Tribunal and before the day on which the instrument of variation was delivered.Under sub-section (1B) of s.245(A) inserted by FA 2004 if a person continues to fail to comply with the requirements of section 218A after the anniversary of the period of six months referred to in section 218A(1) they shall be liable to a penalty of an amount not exceeding £3,000. This new penalty applies where the date for notification arises after 22 July 2004 and is subject to the defence of reasonable excuse.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)