IHTM31184 - Raising assessments: IOP assessment

In the main, the IOP ( IHTM31012) window is the same as for the NIOP assessment ( IHTM31183).

On the right side of the page however there are two columns showing different calculations for tax on assets for which

• instalments still apply, and
• instalments no longer apply (or never applied)

Where tax may be paid by instalments, a box half way up the left side of the window shows the number of instalments that are included in the assessment and the due date of the most recent one.

Where the next instalment is due within the month, COMPASS will prompt you with a message

If you reply Yes, COMPASS will

• calculate the tax to include the next instalment

and

• set the Effective Date ( IHTM31187) of the assessment to the due date of the next instalment and calculate interest up to that date.

You should not reply yes if the assessment you are raising will result in a repayment.

Apportionment

Where part of the property qualifies for instalments and part does not, COMPASS will apportion the tax charge between the properties.

COMPASS will also apportion tax previously paid ( IHTM31188), but check that this is done correctly if you have made amendments to the values since the last assessment before classifying part as sold. Make any amendments manually.

If there is a change to the application of reliefs against tax ( IHTM31189), you will have to make the apportionment adjustment yourself.

Interest

COMPASS calculates interest at

• box 1 on the unpaid tax from the due date of the last instalment to the Effective Date of the assessment
• box 2 on the entire balance of tax unpaid from the previous due date to the last due date
• box 3 on any changes in tax for the period before the previous due date

Example

You raise an assessment for IOP on 17 Aug 02 for the sixth instalment due on an estate. The payment was due on 31 May (so is late) and there have been uplifts to the values and according tax charges. COMPASS calculates

• Box 1 – interest on only the current tax to pay from 1 June 02 to 17 Aug 02
• Box 2 – interest on the entire outstanding balance between 1June 01 and 31 May 02
• Box 3 – Interest on increase in IOP tax since last assessment from 1 June 97 to 31 May 01

Deposits

Where you apply deposits ( IHTM31751), COMPASS cannot apportion them between tax where instalments still apply and where they do not. COMPASS will prompt you to apportion the deposits manually ( IHTM31195).