IHTM36000 - Penalties: contents
Introduction
| IHTM36001 | Summary |
| IHTM36002 | Introduction |
| IHTM36010 | Types of penalty |
Late accounts
| IHTM36021 | When to seek a penalty? |
| IHTM36022 | Accounts subject to a penalty |
| IHTM36023 | Penalties chargeable |
Procedures for taking penalties on late accounts
| IHTM36031 | Summary of procedures (chart) |
| IHTM36032 | Who is responsible for requesting a penalty? |
| IHTM36033 | Identifying late accounts |
| IHTM36034 | Initial action in Compliance Group and PC&S |
Penalty request letter
| IHTM36041 | General |
| IHTM36042 | Standard letter |
| IHTM36050 | No response to request for penalty |
| IHTM36051 | Taxpayer claims reasonable excuse |
| IHTM36052 | Formal penalty proceedings |
| IHTM36053 | Settling the penalty enquiry |
Reasonable excuse
| IHTM36061 | General |
| IHTM36062 | Account lost or delayed in the post |
| IHTM36063 | Loss of financial records or other papers |
| IHTM36064 | Serious illness, absence or family problems |
| IHTM36065 | Bereavement |
| IHTM36066 | Not aware an account had to be delivered |
| IHTM36067 | Account, or the affairs of a deceased person, are too difficult |
| IHTM36068 | Pressure of work |
| IHTM36069 | Reasonable excuse: failure by an agent |
| IHTM36070 | Lack of information |
| IHTM36071 | Domicile outside the United kingdom |
Failure to deliver an account
| IHTM36081 | When can you seek a penalty? |
| IHTM36082 | Penalties chargeable |
Failure to deliver an instrument of variation where additional tax payable
| IHTM36091 | When can you seek a penalty? |
| IHTM36092 | Penalties chargeable |
Incorrect account, information or document
| IHTM36101 | When is an account, information or document incorrect? |
| IHTM36102 | Types of penalty |
| IHTM36103 | S.247(1) penalty |
| IHTM36104 | S.247(3) penalty |
| IHTM36105 | S.247(4) penalty |
| IHTM36106 | S.248(1) penalty |
| IHTM36107 | S.248(2) penalty |
| IHTM36108 | Time limit for seeking penalties |
Investigating incorrect accounts, information or documents
| IHTM36121 | What to do when you have an incorrect account, information or document (chart) |
| IHTM36122 | When to consider penalties |
| IHTM36123 | Criteria for considering penalties |
| IHTM36140 | Who is responsible for taking up penalty enquiries |
| IHTM36141 | Establishing whether a penalty is appropriate (chart) |
| IHTM36142 | Initial action in Compliance Group |
| IHTM36143 | Consulting valuers |
| IHTM36144 | Risk assessing the potential penalty |
Raising enquiries into incorrect accounts, information and documents
| IHTM36151 | General approach |
| IHTM36152 | Initial questions |
| IHTM36153 | Undervaluations (general) |
| IHTM36154 | Undervaluations of land or buildings |
Issuing leaflet IHT 13
| IHTM36156 | When and why is an IHT 13 issued? |
| IHTM36157 | Draft introductory wording for opening an investigation into an undervaluation |
| IHTM36158 | Draft introductory wording for opening an investigation into an omission |
Dealing with taxpayer's replies
| IHTM36161 | General |
| IHTM36162 | Do not make assumptions |
| IHTM36163 | Inconsistency in taking up cases |
| IHTM36164 | Claims that excess monetary deposits prevent a penalty being sought |
| IHTM36165 | Noting up penalty time limits |
| IHTM36166 | Death of person incurring a penalty |
| IHTM36167 | Deciding the amount of penalty due |
Calculating the penalty
| IHTM36171 | Board's policy |
| IHTM36172 | Effect of criminal proceedings |
| IHTM36173 | How to calculate a penalty (chart) |
| IHTM36174 | General approach |
| IHTM36175 | De minimis limits for seeking a penalty |
| IHTM36176 | Culpable tax |
| IHTM36177 | Factors to take into account when abating a penalty |
| IHTM36178 | Penalties due on more than one asset |
Disclosure
| IHTM36181 | What does disclosure mean? |
| IHTM36182 | What to allow for disclosure? |
| IHTM36183 | Additional abatement |
Co-operation
| IHTM36191 | What factors to take into account? |
| IHTM36192 | Genuine disagreements and 'external' intervention |
| IHTM36193 | Lack of co-operation by an agent |
Gravity
| IHTM36201 | What to take into account? |
| IHTM36202 | Size of underpayment |
| IHTM36203 | Calculating the abatement |
| IHTM36204 | Minor offences |
| IHTM36205 | Middle range offences |
| IHTM36206 | More serious offences |
| IHTM36207 | Most serious offences |
| IHTM36208 | S.248 penalties |
| IHTM36210 | Normal penalty loadings impracticable |
| IHTM36211 | Penalty calculation form |
Negotiating a penalty
| IHTM36221 | Summary of procedures (chart) |
| IHTM36222 | When to seek to agree a penalty |
| IHTM36223 | Prior approval for expected offer |
| IHTM36224 | Informing the taxpayer |
| IHTM36225 | Establishing culpability |
| IHTM36226 | Establishing fraud |
Taxpayer does not make the expected offer
| IHTM36231 | General |
| IHTM36232 | Normal negotiating limits |
| IHTM36233 | Culpability disputed |
| IHTM36234 | Culpability disputed but taxpayers prepared to make an acceptable offer |
| IHTM36235 | Payment of less than the expected offer made |
| IHTM36236 | Refusal to co-operate |
| IHTM36237 | Insufficient means |
| IHTM36240 | Request for time to pay |
Instalment offers
| IHTM36251 | General |
| IHTM36252 | Considering formal instalment arrangements |
| IHTM36253 | Re-calculating the penalty |
| IHTM36254 | Payments exceeding 2 years |
| IHTM36255 | Method of payment |
| IHTM36256 | Early settlement |
Settling the penalty
| IHTM36261 | Summary of procedures (chart) |
| IHTM36262 | Acceptable offer made |
| IHTM36263 | Checking the completed offer |
| IHTM36264 | Correcting errors in the offer |
| IHTM36265 | Taxpayer forwards own letter of offer |
| IHTM36266 | Delay in accepting the offer |
| IHTM36267 | Letter of acceptance |
| IHTM36268 | Administrative procedures |
Improving future compliance
| IHTM36271 | General approach |
| IHTM36272 | Joint property |
| IHTM36273 | Completing enquiries before delivering an account |
| IHTM36274 | Personal representatives employing agents |
| IHTM36275 | Valuations of land |
| IHTM36276 | Provisional estimates of value |
| IHTM36277 | Funding problems of tax due on delivery of the IHT400 |
| IHTM36280 | Repayment of penalty |
| IHTM36281 | Repayment of tax |
Fraud
| IHTM36291 | What is fraud? |
| IHTM36292 | Examples of fraud |
| IHTM36293 | Dealing with suspected fraud |
| IHTM36294 | Role of Special Compliance Office |
Negligence
| IHTM36301 | What is negligence? |
| IHTM36302 | Who must you show to be negligent? |
| IHTM36303 | Onus of proof |
Innocent Error
| IHTM36311 | Dealing with claims of innocent error |
| IHTM36312 | Not aware of omitted asset or gift |
| IHTM36313 | Did not know that asset or gift had to be declared |
| IHTM36314 | Misinformed by a third party |
| IHTM36315 | Agent's failure |
| IHTM36316 | Advice given by IHT |
| IHTM36317 | Information supplied to another part of HMRC |
| IHTM36320 | Miscalculation |
Letters of offer
| IHTM36331 | Importance of correctness |
| IHTM36332 | Drafting the letter (general) |
| IHTM36333 | Checklist |
| IHTM36334 | Using precise terms |
| IHTM36335 | Consideration |
| IHTM36336 | Duties included |
| IHTM36337 | Taxpayer's default |
| IHTM36338 | Interest and penalties |
| IHTM36339 | Amount of the offer |
| IHTM36340 | Date of payment |
| IHTM36341 | Excluded duties |
| IHTM36342 | Signature |
| IHTM36343 | Tax year |
| IHTM36344 | Interest clause |
| IHTM36345 | Instalment offers (general) |
| IHTM36346 | Instalment offers (examples) |
Standard letters of offer
| IHTM36351 | Specimen form of offer involving penalties only |
| IHTM36352 | Specimen form of offer involving tax, interest and penalties |
| IHTM36353 | Specimen form of offer involving penalties only, payable by instalments - England, Wales and Northern Ireland cases |
| IHTM36354 | Specimen form of offer involving tax, interest and penalties, payable by instalments - England, Wales and Northern Ireland cases |
| IHTM36355 | Specimen form of offer involving penalties only, payable by instalments - Scottish cases |
| IHTM36356 | Specimen form of offer involving tax, interest and penalties, payable by instalments - Scottish cases |
Reports to Tax Administration Advice(TAA)
| IHTM36361 | General |
| IHTM36362 | Form of report |
Recording penalties
| IHTM36371 | General |
| IHTM36372 | database for non-COMPASS penalties |
| IHTM36373 | Creating a penalty record on COMPASS |
| IHTM36374 | Opening a penalty record on COMPASS |
| IHTM36375 | Enquiry not required |
| IHTM36376 | closing a penalty record on COMPASS |
| IHTM36377 | Entering data on the penalties database |
Accounting procedures
| IHTM36391 | Bringing payment of penalty to account |
| IHTM36392 | Payment not received by due date |
| IHTM36393 | Defaulting taxpayer |
| IHTM36394 | Repaying a penalty |
Human Rights and penalties
| IHTM36401 | Introduction |
| IHTM36402 | Article 6 advice |
| IHTM36403 | What you should say in a letter |
| IHTM36404 | What you should say at a meeting |
| IHTM36405 | What to do if the taxpayers refuses to co-operate |
Public Funding for penalty hearings
| IHTM36411 | When is Public Funding available? |
| IHTM36412 | When you must issue the Public Funding Leaflet |
| IHTM36413 | Public Funding and s.245 penalties |
| IHTM36414 | Requests for Public Funding leaflets |
