IHTM39066 - Correspondence on closed files: requests for information from outside HMRC

On closed files solicitors usually write in to

• Ascertain whether or not certain values included in an Account have been accepted or agreed for inheritance tax purposes
• Enquire whether or not the property valuations have been agreed with the District Valuer
• Enquire whether or not agricultural or business relief has been agreed and accepted

If the case is a tax-paying file

The values have usually been agreed and the information can be found in the file. A letter answering the query is all that is required. Anything that looks like it may require exchanges of correspondence, or lengthy and/or detailed investigation, should be re-divided to the other appropriate Teams.

If the case is a non-tax-paying file

These values have often not been ascertained/accepted - as there is no liability to tax, and in these types of cases HMRC is not statutorily required to negotiate a precise value. Therefore, HMRC, as a matter of practise does not agree values for any items of property etc. unless a value is required for the purpose of calculating a charge to tax.

If an Instrument of Variation has been completed by the parties and sent into the Office, then if, because of the Deed, a calculation of a charge to tax is warranted, then and only then will the appropriate asset value be formally agreed.

Where letters from outside HMRC are received asking whether or not we have any questions on an Account that has been delivered

• Check on ALF that the file has been closed
• If so, please telephone the parties to confirm that we have no further enquiries and that they can apply for a Clearance Certificate. If the parties cannot be contacted then SL58/124 may be issued.