When property is accepted in satisfaction of tax or duty under
IHTA84/S230 (but
not IHTA84/S231) or Para 17 Sch 4 FA 1975 (under
S8 (3)(a) to (c) National Heritage Act 1980) it may be accepted on
terms that its value for the purpose of the acceptance is to be
taken at a date earlier than the date on which the property is
actually accepted.
If so, the terms may also provide that the amount of tax,
which is satisfied by the acceptance, shall not carry interest from
that earlier date. Thus if the acceptance price is based on the
value of the property at the date of the offer (rather than the
date of the acceptance), interest on the tax will cease to accrue
from the date of the offer.
IHTA84/S233 (1A) and IHTA84/S97 apply only where the
acceptance occurs
on or after 17 March 1987. Between them the two
provisions cover acceptances in satisfaction of IHT, CTT and ED.
The date when the liability of the tax or duty to be wholly or
partly satisfied by the acceptance arose does not matter.
Heritage will state the date on which interest ceases to
accrue. Refer to Heritage all claims for waiver of interest under
IHTA84/S233 (1A) and IHTA84/S97 or enquiries about them, via the
Compliance Group Specialist C-1 (Sco).
