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HMRC internal manual

Inheritance Tax Manual

Investigating incorrect accounts, information or documents: death of person incurring a penalty

There was some uncertainty as to whether IHTA84/S250 (2) is in breach of the European Convention on Human Rights and Human Rights Act 1998 which came into effect on 2 0ctober2000. It has now been found that it is and we can therefore no longer seek penalties from the personal representatives of a deceased person who was liable for a penalty. In addition any such penalties already collected must now be repaid. These repayments should include repayment interest at the rate applicable under section 233 of the Inheritance Tax Act 1984. Such interest would run from the date the penalties are paid to the date of repayment.