IHTM36010 - Penalties: types of penalty

Penalties can be sought for various acts or omissions that might prevent the collection of tax properly due.

In general penalties arise because

• an account is delivered late ( IHTM36021), IHTA84/S245
• there is a failure to deliver an account (( IHTM36081),IHTA84/S245
• there is a failure to meet the requirements of IHTA84/S218A where an instrument of variation made on or after 1 August 2002 results in additional tax ( IHTM36091), IHTA84/S245A (1A)
• an account, information or document is incorrect ( IHTM36102), IHTA84/S247 or
• there is a failure to correct an earlier error within a reasonable timescale ( IHTM36102), IHTA84/S248
• there is a failure to comply with a IHTA84/S219A notice for information ( IHTM32221), IHTA84/S245A (3).

We may also seek penalties where there is a failure

• to comply with a IHTA84/S219 information notice ( IHTM32231), IHTA84/S245A (2)
• to make a return under IHTA84/S.218 of names and addresses of both the settlor and trustees where a settlement is domiciled in the UK and the trustees are not resident in the UK, IHTA/S245A(1)

The situations that give rise to the latter group of penalties are rarely seen and they are dealt with by Litigation.