IHTM36371 - Recording penalties: general

Late account penalties, penalties for the delivery of incorrect accounts, documentation and information and for the late reporting of amendments are recorded in a separate penalty database on COMPASS.

Late account penalties are generally set up as part of the data-capture process, although there is a separate facility to create a penalty record for a IHTA84/S245(2) & (3) manually.

All penalties for the delivery of incorrect accounts, documentation and information under IHTA84/S247 must be set up on the COMPASS database. Any other penalties levied, principally those where

• there is a failure to meet the requirements of IHTA84/S218A where an instrument of variation made on or after 1 August 2002 results in additional tax ( IHTM36091), IHTA84/S245A(1A)
• there is a failure to comply with a IHTA84/S219A notice for information ( IHTM32221), IHTA84/S245A(3)
• to comply with a IHTA84/S219 information notice ( IHTM32231), IHTA84/S245A(2)
• to make a return under IHTA84/S218 of names and addresses of both the settlor and trustees where a settlement is domiciled in the UK and the trustees are not resident in the UK, IHTA84/S245A(1)

should be recorded on a separate Penalty database ( IHTM36372) on the Knowledge tree. This database should also be used to record any late account penalties where the calculation cannot be raised on COMPASS; for example Heritage and timber recapture charges.