IHTM31135 - Making amendments: reliefs and exemptions

From the Estate Details ( IHTM31131) window you will have selected the Reliefs button to open the Reliefs window.

For COMPASS purposes, reliefs includes exemptions. You can apply a relief against either

• an assessment group, or
• an individual asset.

It is good practice to set reliefs against specific assets on IOP ( IHTM31012) assessments. This helps to prevent the incorrect application of the relief when tax is paid by instalments on some assets but not others. In Sample cases ( IHTM31002) you should always set reliefs (notably agricultural and business relief) against specific assets, although if appropriate, you can set an exemption against an assessment group.

If you have to apply a relief against the whole group, and the instalment option is later not appropriate on all assets, apportion the relief between each asset and re-record that part against each asset specifically.

Adding a relief

You can designate the relief to a group or asset by selecting from the two drop-down menus.

• Click on the Add button and select the appropriate type of relief from the list of options.
• Write the correct amount of relief in the left box and press =.
• To avoid incorrect calculations, always include the relief as an absolute amount and do not use the proportion option (leave it at 100%).
• Record whether the addition is compliant ( IHTM29012).
• Click on OK to save and exit the screen.

Amending an existing relief

Highlight the appropriate relief in the list on the Reliefs window and click on the Update button.

Either

• write the amendment in the left box and press + or – to adjust the existing figure, or
• write the new figure in the left box and press = to replace the existing amount.

Indicate and record any compliant change.

Multiple reliefs

ERS ( IHTM29101) often has difficulty recording the correct compliance yields on two reliefs on the same asset or group. For example, you may have spouse or civil partner exemption ( IHTM11032) and agricultural relief on the same property. If you experience problems, try to amend one relief as against a specific asset, and one against the assessment group.