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HMRC internal manual

Inheritance Tax Manual

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HM Revenue & Customs
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Issuing leaflet IHT 13: when and why is an IHT 13 issued?

It is important that taxpayers are informed of our views and their rights during enquiries. They also need to know about their obligations and how through disclosure (IHTM36181) and co-operation (IHTM36191) they can assist in achieving early resolution of the issue and can reduce any penalties that may have to be paid.

Unless you suspect fraud (IHTM36291) you should issue leafletIHT 13 when you first ask questions aimed at helping you to decide whether or not you should seek a penalty. Normally, when you issue the leaflet, you will need to say that you need further information before you can decide whether a penalty should be sought. This is in keeping with the general approach (IHTM36002) to penalty investigations. The following pages provide suggested introductory words for opening a penalty enquiry and issuing the IHT 13 in cases where there is an undervaluation (IHTM36157) or an omission (IHTM36158).

You must also read and follow the guidance on penalties and human rights (IHTM36401) at the start of any penalty investigation.

The IHT 13 should be issued on the basis of one for each taxpayer and one for any agent acting. Where a professional is acting either as an executor or as an agent, you should send all the leaflets to the agent, saying that you are providing sufficient copies for one to be given to each taxpayer. Otherwise, unless there are good reasons to the contrary, you should send your enquiries and a copy of the leaflet direct to each taxpayer, together with an appropriate explanation as to why you are sending the leaflet.

If you suspect fraud you should not prejudice any future action that Special Civil Investigations may wish to take. This means that you should not issue leaflet IHT 13 or refer to co-operation leading to a financial settlement. You should refer the case to your B2 manager before taking any further action.