IHTM35013 - Instruments of
Variation: time limits
The statutory periods in the IoV legislation are that
- the instrument must be made within two
years (
IHTM35024) of the date of death,
and
- where the instrument is executed before 1
August 2002 a written notice of election (
IHTM35027) must be given to the Board
within six months of its execution
- where the instrument is executed on or
after 1 August 2002 the instrument must be sent to us within six
months of its execution if it contains a statement of intent (
IHTM35028) that IHTA84/S142 (1) applies
to it
and it results in additional tax being
payable.
The limits make IoVs a prime area for complaint about
delay. Consequently you must give such cases priority,
particularly where the time limits are approaching.
Unless the taxpayer has allowed so much of the statutory
period(s) to expire before submitting the documents to us that it
is impracticable to consider the papers within the time limits,
your response
must be made in sufficient time to enable them to
review their position before the appropriate period expires. In
particular
- where it is known that an IoV is to be, or
has been, executed you should request a copy as soon as possible,
and remind the taxpayer of the need for a timely election,
- on receipt of the instrument, or copy, you
should examine it as a matter of some priority (increasingly so as
the two year period runs out). And if it is an instrument executed
before 1 August 2002 and is not accompanied by a valid election you
should point this out to the taxpayer immediately, with a request
that if the terms of IHTA84/S142 (1) are to apply then such an
election must be made within the statutory period.
- where the instrument is executed on or
after 1 August 2002, it must incorporate the statement of intent so
the taxpayer will not have the option to submit a separate
statement. If it does not include a statement of intent but the
taxpayers nonetheless indicate that they believe IHTA84/S142 (1) to
apply, you should refer the case to Technical Group.
