IHTM39018 - Future claims; Closing a file where an F (Timber) marking is appropriate

When the file is otherwise ready for closure you should notify the liable person that inheritance tax may be chargeable in connection with the deceased's death if the trees or underwood, the value of which has been left out of account, are disposed of in the lifetime of the person now entitled to them.

Mark the front of the file cover in red;

• O(F) in the next available box in the "status" column,
• F(Timber) in the next available box in the "Review" column followed by the review date. The review date should be set 5 years hence unless there are clear indications that the woodlands are now coming into production or a change in ownership is likely, in which case a shorter period should be considered

The layout of older file covers was different to those currently in use. The markings on older file covers should not vary from those set out above but the positioning of these will. Mark in red;

• O(F) in the next available box in the "Accounts" column,
• F(Timber) in the next available box in the column headed "File, P, F or E", followed by the review date.

When issuing SL124A or SL124B ( IHTM40001),ensure that the option deferring the tax payable on the timber is selected.