When a file is referred to Debt Management & Banking (DMB)
because of a delay in payment, you, as the DMB caseworker, should
consider what protective action should be taken to protect the
charge to Inheritance Tax. One of the options is to place a stop on
the income tax file relating to the deceased and/or the taxpayer.
If you decide on this course of action, you should open a Debt
Management Case Plan (
IHTM38041) accordingly.
By registering a stop, our colleagues in the Network are
alerted to the fact that there is an outstanding IHT liability and
will withhold any income tax repayment due to the deceased and/or
the taxpayer.
To register a stop, obtain the appropriate tax reference
using Taxpayers’ Index (
IHTM38082). If the only reference is
for income tax paid on UK assets, then you need to send form ENF 5
to the relevant HMIT district office.
If the deceased/taxpayer was resident outside the UK, send
form ENF 5 to the Centre for Non-Residents (CNR).
Once the tax stop has been registered, HMIT or CNR will
notify us accordingly and will send their tax file so that we can
extract any other useful information. You should note up the Case
Plan and decide what further action can be taken in the light of
any additional information.
When the IHT has been paid, the tax stop can be removed,
using the ENF 5.
