IHTM37011 - Considering a NOD: when is it appropriate?

Most commonly, you will consider a NOD

• when the taxpayer persistently refuses to pay an assessment, in which case you must refer to the delay instructions ( IHTM32243)

or

• to bring a dispute to a head.

Before issue of a NOD, you may have to obtain sufficient information from the taxpayer in order to be able to decide on the correct position. If the taxpayer does not supply that information, firstly consider using information notices ( IHTM32191) to elicit the required details.

As soon as it becomes clear that negotiations have become deadlocked, for example on the merits of a claim or a valuation, consider the NOD procedures. Regard the NOD procedures as a standard tool, rather than an ultimate deterrent.

NODs are generally issued by DMB where they relate to non-payment of tax not in dispute and by IHT Compliance or PC&S, in all other instances. However, you must never threaten the issue of a NOD without prior discussion with Technical/ Litigation.

Remember you must refer to Litigation if an issue remains disputed after two exchanges of correspondence and no new facts have been presented.