IHTM31018 - Assessment principles: when to raise assessments

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Generally

It is of paramount importance that you raise calculations as soon as possible to minimise any interest charges and to bring to account money due to the Exchequer.

On delivery of an account

Delivery of the account is effectively an offer to pay tax immediately. On receipt, FACET or pre-grant will have assessed provisionally prior to full technical examination on the basis of the figures returned.

When you examine the account for the first time you must review the calculations. At this time, also consider whether there may be a likely payment difficulty ( IHTM38025) which you should refer to DMB.

Re-assess if

• the calculations are incorrect compared to the taxpayer’s calculations, for instance if there has been an error in inputting the asset values on COMPASS.

or

• the taxpayer has paid insufficient tax or interest, using the amount paid as a deposit ( IHTM31560).

If you cannot prepare recalculations because

• you do not have information about aggregable property

or

• there is some other difficulty,

try and resolve the matter by telephone if possible.

Limit the amount of tax you assess to the minimum likely to be payable, for example by incorporating a deduction or relief which has been claimed but not agreed.

However, you can exercise discretion in raising provisional assessments where small amounts of tax are involved. If you feel it appropriate you can defer assessment of tax (This text has been withheld because of exemptions in the Freedom of Information Act 2000)until

• you are ready to raise a final assessment or
• the taxpayer requests an assessment.

If you are in doubt as to the exact amount of any increase to the value of an estate, consider drawing the taxpayer's attention to placing money on deposit.

Subsequent amendments

As amendments are notified or agreed, note them up (usually on COMPASS) immediately and assess the additional tax "not in dispute".

• You can use your discretion to defer issue of interim calculations for tax "not in dispute" (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
• Withdraw immediately any calculations that are challenged by the taxpayer and cannot, on appeal, be defended before the First-tier Tribunal. (Withdrawing a calculation for tax not due removes it from our accounting system and results in a more accurate central record of the sums due but not paid)
• Apply payments on account by raising charges on the amendments for which a deposit has been made. This means that wherever possible, you must apply a deposit made by a taxpayer against tax and/or interest known to be due when the payment is made and not leave it sitting on account waiting for other enquiries to be settled.
• If the amount received is insufficient you should raise a calculation for the balance of tax and/or interest due that is not in dispute.