SVM108180 - Inheritance Tax: Teamworking Arrangements with the IHT Caseworker - Case Conferences

A case conference should be viewed as an opportunity for the valuer and the compliance caseworker to meet, assess all aspects of progress and decide on the most appropriate course of action.

A case conference should always be considered if a case has not been settled within 12 months of referral to SAV. Case conferences can be arranged at any time and are encouraged in complex cases or where the tax consequences are unclear.

Those attending should prepare well in advance so that informed views can be reached on:

  • The tax implications - both the valuer and the compliance caseworker should be fully aware of the tax implications of what they are trying to do. A key aim of the case conference is to decide whether the tax at stake, or the precedent setting value, justifies further compliance action.
  • Cases which have been referred to colleagues at the Valuation Office (VO) - prior to a case conference the latest position should be ascertained from the VO. Find out how far apart the parties are and how confident the VO is of his opinion. If the case went to appeal, what value would the VO defend? Find out if there is any outstanding information which it might be possible to obtain by the compliance caseworker issuing an Information Notice. If the case warrants it, be prepared to arrange for the VO to be at the case conference.
  • Ongoing Risk Assessment -  The valuer should periodically risk assess an ongoing referral to the VO and consider whether the actions being taken remain proportionate to the tax risk. Where the change in property value will have minimal change to the share value, consider recalling the case from the VO and trying to reach a pragmatic settlement which factors in all the other uncertainties inherent in valuing shares. Even if the value offered is felt to be wrong there could be so little tax at stake that a pragmatic agreement may be in order. However, where you accept a value on pragmatic grounds that you consider to be lower (but not higher) than market value, the parties should be informed that the acceptance will nevertheless be ‘ascertained’ as the acquisition value for CGT purposes.
  • Joint meetings - if the outcome is likely to be productive for the case as a whole, consider holding a joint meeting with the case worker and the customer.
  • The use of Information Powers - consider whether delays are being caused by a lack of information. If so, the valuer should discuss the matter with the compliance caseworker. See also chapter at  SVM118000.

Where the valuer has sufficient information on which to base an opinion of value, the valuer will be responsible for making a recommendation  to issue a Notice of Determination (NOD) (section 221 IHTA 1984, also chapter at SVM118000), however there may be multiple risks to consider and the decision of whether to issue a NOD is the responsibility of the compliance case worker.

The valuer should discuss their proposed course of action with the compliance caseworker at a case conference and ensure that the precise amount of tax at stake is known. The compliance caseworker may be asked to draft the NOD but its terms and the timing of its issue must have been approved by SAV.

Generally

The compliance caseworker has overall responsibility for the conduct of the enquiry. The purpose of case conferences is to keep them informed of the valuer’s progress.

Note that the IHT valuation should not be considered in isolation. Where considering the value of shares for the purposes of both IHT and other taxes, the approach should be based on the whole picture - and if there are concerns regarding the non-IHT valuations, these should be explained to the compliance caseworker.

Additional Guidance: SVM150000