|: penalty for a late account|
Thank you for the completed inheritance tax account. The information you have provided will be reviewed and you will hear from us in due course.
This account was sent to us outside the usual 12 month time limit allowed by s.216 Inheritance Tax Act 1984. A penalty of £ therefore arises under s.245.
A penalty may not be payable if there is a reasonable excuse for the delay. We consider a reasonable excuse as one where an event beyond your control prevented you from sending the account to us before the time limit expired.
|To: Section K, HMRC IHT, Ferrers House, PO Box 38, Castle Meadow Road, NG2 1BB or DX 701205 Nottingham 4|
|S.245 penalty of £....................enclosed|
To: HMRC IHT, Ferrers House, PO Box 38, Castle Meadow Road, Nottingham, NG2 1BB or DX 701201 Nottingham 4
|The account was lost or delayed in the post|
|Loss of the deceased's financial records or other papers|
|Other (please specify)|
Extract from IHT13 leaflet, “Inheritance tax and penalties”
Examples of what we may agree as a reasonable excuse
The account was lost or delayed in the post
We expect you to allow sufficient time for the account to reach us by the due date. However, where the return is posted in good time, we agree as a reasonable excuse any unforeseen event which disrupted the normal postal service and led to the loss or delay of the account, such as
Loss of the deceased’s financial records or other
We normally agree that the loss of records through fire, flood or theft is a reasonable excuse, although we may need evidence of the circumstances. We also need to be satisfied that the information necessary to complete the account could not be replaced in time for the deadline.
The illness must be so serious that it prevented you from dealing with Inheritance tax affairs before the deadline and from that date to the time the completed account is sent in, such as
Where illness involves a lengthy stay in hospital or
convalescence, we normally expect you to have made arrangements for
completing and sending in the account on time. There may be cases
where this is not possible.
If the excuse involves the serious illness of a close relative or partner, we agree this only if
Naturally, we agree the death of a close relative or partner shortly before the deadline is a reasonable excuse, as long as you had already taken the necessary steps to have the account ready on time.