If you have to challenge any discrepancy with the taxpayers you
should be careful not to give any impression that you are accusing
the taxpayers of any wrongdoing. There may well be an explanation
as to why the information given to the tax office and that on your
file do not match up. The following gives guidance on how to deal
with those items identified by the tax office on form 982 as
requiring further investigation.
Decreases in capital
You should say that internal enquiries have revealed that income has fallen and quote the tax years concerned. Ask the taxpayers
Try to identify specific capital assets that do not appear on
the IHT400. You refer the taxpayers to these items saying that that
were returned for income tax purposes in the relevant tax year. Ask
the taxpayers to say whether the asset has been disposed of and, if
so, for information about how the item was disposed of and what
happened to the proceeds.
No grant or confirmation taken out
Check ALF ( IHTM03311) and the Calendar of Grants ( IHTM09310) and if there is no trace ask the taxpayers whether and when they intend to take out a grant or confirmation. If the taxpayers indicate that there are obstacles to taking out the grant then you may need to refer to DMB to protect HMRC's interests.
Enduring Power of Attorney
You will only be interested in the existence of a power of attorney if it has been used to dispose of the deceased’s assets. You will therefore need to establish some basic facts by asking if the power was
If the power was not used, or there were no disposals or gifts, there is nothing else to pursue. If there were disposals or gifts you should ask for details of any that have not been included in the account.