Heritable property in Scotland is not subject to the HMRC
charge. However a charge does attach to property representing it
after a disposition of the heritable property has been effected
IHTA84/S237 (4).
In this context a "disposition" does not have to be a sale.
Protective action concerning land in Scotland or recovery
proceedings following the determination of a liability will be
taken in conjunction with IR Solicitor’s Office (Scotland).
In signeting a summons, the Court will grant warrant to IRSO
(Scotland) on our behalf. In effect, this enables IRSO (Scotland)
to take protective action to prevent the debtor from disposing of
his assets.
An inhibition is a personal diligence in that, once it is
recorded in the Register of Inhibitions, it prevents the owner of
heritable property from granting a good title to the subjects. An
inhibition will be revealed when a prospective purchaser conducts a
search of the Personal and Property Registers and the debtor will
have to provide a discharge of the inhibition before the property
can be sold. This allows us to demand payment in return for the
discharge, which may be full or partial (in the latter case,
usually where the entire sale proceeds are insufficient to clear
the debt). IRSO (Scotland) can also obtain an inhibition after the
decree has been issued.
An inhibition prescribes, i.e. is extinguished,
but we can seek to renew the inhibition.
Inhibitions are only applicable to "voluntary alienations",
i.e. they cannot be applied where the conveyance of the land is
obligatory, either because previous missives have been concluded,
such as exchange of contracts, or where the property is being sold
under Power of Sale, i.e. following repossession by a mortgagee.
If an inhibition or arrestment fails, and as an alternative
to sequestration, Debt Management & Banking may accept a
standard security over the property. This will operate in the same
way as a mortgage and will be registered in the Land Register. We
will thereby have security for our debt until the property is sold
and an interest in the proceeds of sale, subject to any prior
security holder. As a security holder, we have the Power of Sale
under the Conveyancing and Feudal Reform (Scotland) Act 1970 if the
debtor fails to pay the debt in terms of a bond which is
incorporated into the standard security.
