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HMRC internal manual

Inheritance Tax Manual

Non - Land valuation cases: contentious issue cases

Where negotiations have stalled because of a contentious issue or disagreement over the interpretation of the law, rather than a valuation, you must refer the case to Litigation if no new facts have been presented after two exchanges of correspondence. Litigation will consider whether a Notice of Determination (NOD) should be issued

Taking the Litigation and Settlement Strategy into account, Litigation will consider whether

  • sufficient is at stake in principle or tax or both to justify a NOD and any subsequent appeal hearing
  • there is any prospect of persuading the taxpayer to accept the official view of the matter or of achieving an early practical reconciliation; and
  • a NOD would not prejudice investigations taking place at any other file, or elsewhere in HMRC.

If you feel that you may have reached this stage in one of your files you should refer the case to your manager for advice and/or possible regrading. Caseworkers are not expected to be responsible for dealing with any aspects once we are at the stage of contentious proceedings.

If a NOD is to be issued, it will be a Point of Principle NOD. These types of NOD are drafted according to the particular case. You can find examples of these (IHTM37094) further on in this section of the Manual.