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HMRC internal manual

Inheritance Tax Manual

Letters of offer: amount of the offer

The letter of offer should set out the gross amount of the offer and then show separatelyany amounts to be deducted. These will normally be amounts that are paid on account andamounts available for set off from a repayment due outside the scope of the settlement,provided that the taxpayer has agreed to the set off. If the set off includes anyrepayment of interest, it should be mentioned. An appropriate wording might be

‘… of which I (we) have already paid £x on account and against which repayments due to me (us), with interest, of £y are to be set: the net sum of £z will be paid within …’

Where a Certificate of Tax Deposit (IHTM31771) is to betendered in settlement, the certificate should be mentioned in the letter of offer.

You must be sure that the figures of deductions are correct, as it may prove difficult torecover any excessive deductions that are allowed.

It is important to confirm with Accounts, before concluding the settlement, that therelevant payments are still held and that they have not been used against calculations.