In the event of default or delay in settlement of a debt you
will as part of normal debt management processes seek to establish
what has happened to property comprised in a chargeable estate.
If distributions or misappropriations have taken place the
persons in whom the property vests should be made aware at an early
stage of the extent of their liability and their statutory
obligation to pay the tax from the money or property they received.
Writing to beneficiaries for settlement of a debt from money
or property they have received and plan to enjoy can be a sensitive
area.
The initial approach to a beneficiary should not be a
straightforward demand for payment. Instead you should say why it
has become necessary for us to contact them (i.e. a debt that
should have been paid by the personal representatives (
IHTM05012) or trustees remains unpaid)
and explain how the debt has arisen.
An unexpected demand from HMRC to a person who may be elderly
or infirm can cause significant distress or alarm. We should aim to
minimise that anxiety by showing sensitivity in our correspondence
and offer to meet with the person liable to discuss the situation
and explore ways of settling the debt.
If you have any doubts about contacting a beneficiary or
think that a communication from HMRC may be unexpected and cause
distress or alarm discuss the "next action" with the DMB Team
Leader.
