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HMRC internal manual

Inheritance Tax Manual

Calculating the penalty: normal penalty loadings impracticable

Where you have doubts on whether culpability and the penalty position can be satisfactorily established, or if factors such as the incapacity of the taxpayer, through old age or infirmity, seem likely to prevent a normal negotiated settlement, you should discuss the case with your manager. You may need to ask for evidence, for example, a letter from a doctor or other medical practitioner before you can accept a plea for mitigation.

In some cases it may be appropriate to waive the penalty or seek a nominal amount only, although if there is more than one personal representative and one or more are not incapacitated, this would not normally apply.

If doubts remain the case should be referred to the Penalty Portfolio Holder who will consider whether advice should be sought from Tax Administration, Litigation and Advice (TALA) (IHTM36361).