HMRC internal manual

Inheritance Tax Manual

IHTM36277 - Improving future compliance: funding problems of tax due on delivery of the IHT400

You should advise agents that they should not

  • recommend to clients that they include assets at less than their open market value to get around a shortfall of funds or a problem in raising sufficient loan funds to pay the tax that is due on delivery of the account
  • suggest to clients that additional assets discovered just as the IHT400 is about to be delivered should be ignored for the time being simply in order to avoid the need for amending the account or further re-financing.

In any circumstances where funding problems arise they should contact DMB before submitting the account. DMB will consider sympathetically any genuine payment or administrative problem and agree practical solutions that will avoid any future penalty implications.