CH56800 - Assessing Time Limits: Tables of time limits for relevant taxes: Inheritance Tax

There is no assessing machinery for IHT, see CH51250, but the time limits apply to action to be taken.

1. Circumstances

Where an IHT account has been delivered and payment made and accepted in full satisfaction of the tax due

Time Limit

4 years from the later of - the date on which the last payment was made and accepted, or the date on which the tax became due

Legislation

Section 240(2) IHTA 1984 as amended by paragraph 11(2) Schedule 51 FA 2009

2. Circumstances

Where an IHT account has been delivered and payment made and accepted in full satisfaction of the tax due and there is careless behaviour

Time Limit

6 years from the later of - the date on which the last payment was made and accepted, or the date on which the tax became due

Legislation

Section 240(4) IHTA 1984 inserted by paragraph 11(3) Schedule 51 FA 2009

3. Circumstances

Where an IHT account has been delivered and payment made and accepted in full satisfaction of the tax due and the lost tax involves an offshore matter or offshore transfer

Time Limit

12 years from the later of - the date on which the last payment was made and accepted or the date on which the tax became due.

For chargeable transfers taking place from 1 April 2013 to 31 March 2015 there must be careless behaviour of the person or anyone acting on their behalf for the 12 year offshore time limit to apply.

For chargeable transfers taking place on or after 1 April 2015 the 12 year offshore time limit will apply where there has been no careless or deliberate behaviour of the person or anyone acting on their behalf.

In every case consider whether relevant overseas information has been provided which means that the lost tax could reasonably have been assessed within ‘normal’ time limits.

Where the behaviour is deliberate the 20 year time limit will apply, see below

Legislation

Section 240B IHTA 1984 inserted by FA18/Section 81

4. Circumstances

Where an IHT account has been delivered and payment made and accepted in full satisfaction of the tax due and there is deliberate behaviour

Time Limit

20 years from the later of - the date on which the last payment was made and accepted, or the date on which the tax became due

Legislation

Section 240(5) IHTA 1984 inserted by paragraph 11(3) Schedule 51 FA 2009

5. Circumstances

Where no IHT account is delivered

Time Limit

20 years from the date of the chargeable transfer, unless the loss of tax is brought about deliberately in which case there remains no time limit

Legislation

Section 240 (6) & (7) IHTA 1984 inserted by paragraph 11(3) Schedule 51 FA 2009

6. Circumstances

Where an IHT account has been delivered and a chargeable asset has been omitted

Time Limit

20 years from the date of the chargeable transfer, unless the loss of tax is brought about deliberately in which case there remains no time limit

Legislation

Section 240 (6) & (7) IHTA 1984 inserted by paragraph 11(3) Schedule 51 FA 2009