Specimen form of offer involving tax, interest and penalties, payable by instalments - Scottish cases
To The Commissioners of HMRC
In consideration of no proceedings being taken against me/us in respect of the duties set out in the statement overleaf, which I/we acknowledge and agree to be unpaid by reason, wholly or in part, of my/our default, or in respect of the penalties and interest to which I/we may thereby have become liable under the Inheritance Tax Act 1984,
I/we (a)* (Name) of (address) and ((b) (Name) of (address))* Personal Representatives of …………….. deceased,
hereby offer in respect of the said duties, penalties and interest and of my/our being allowed to make payment by instalments, the sum of £…….. ("the said sum") being £…….. in respect of the said penalties, together with £……….. in respect of the time granted (of which I/we have already paid £……… on account and the balance of)* which is to be paid by instalments as follows.
If at any time any of the said instalments or any part thereof shall be in arrears and unpaid for the period of fourteen days after the time appointed for payment thereof then the whole of the outstanding balance of the said sum shall become payable by me/us to the Commissioners of HMRC together with interest thereon at the rate applicable from time to time for the purposes of Section 233 Inheritance Tax Act 1984 or any amendment or re- enactment thereof, from the day when default shall be made in payment of such instalment or part thereof. Any such interest shall be paid without deduction of Income Tax.
The acceptance of this offer shall not effect novation in respect of any of the sums assessed and if required by the Commissioners of HMRC the terms of this offer shall be embodied in a bond which will be executed by me/us within thirty days of the date of the letter requiring me to do so and which bond may be registered for preservation and execution. In the event of my/our failing to execute a bond acceptable to the Commissioners within the said period the whole of the balance then outstanding of the said sum together with interest thereon from the date of my/our so failing, at the rate applicable from time to time for the purposes of Section 233 Inheritance Tax Act 1984 or any amendment or re-enactment thereof, shall immediately become payable by me/us to the Commissioners of HMRC who may proceed immediately to recover the said whole balance outstanding with interest aforesaid. Any such interest shall be paid without deduction of Income Tax.
- the back of the letter of offer
Statement of amount unpaid by reason wholly or in part of my default
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* The contents of the brackets should be omitted as necessary.