Specimen form of offer involving penalties only, payable by instalments - Scottish cases
To The Commissioners of HMRC
Liability to penalties for the year to ……….. under the provisions of the Inheritance Tax Act 1984 has been incurred by us as Personal Representatives of ………………… deceased,
We the undersigned, (a) (Name) of (address), (b) (Name) of (address) and (c) (Name) of (address) as Personal Representatives of …………. deceased hereby offer in consideration of no proceedings being taken against us in respect of the said penalties and of our being allowed to make payments by instalments to pay to the Commissioners of HMRC the sum of £…….. ("the said sum") being £…….. in respect of the said penalties, together with £……….. in respect of the time granted which is to be paid by instalments as follows.
If at any time any of the said instalments or any part thereof shall be in arrears and unpaid for the period of fourteen days after the time appointed for payment thereof then the whole of the outstanding balance of the said sum shall become payable by me to the Commissioners of HMRC together with interest thereon at the rate applicable from time to time for the purposes of Section 233 Inheritance Tax Act 1984 or any amendment or re- enactment thereof, from the day when default shall be made in payment of such instalment or part thereof. Any such interest shall be paid without deduction of Income Tax.
The acceptance of this offer shall not effect novation in respect of any of the sums assessed and if required by the Commissioners of HMRC the terms of this offer shall be embodied in a bond which will be executed by me within thirty days of the date of the letter requiring me to do so and which bond may be registered for preservation and execution. In the event of my failing to execute a bond acceptable to the Commissioners within the said period the whole of the balance then outstanding of the said sum together with interest thereon from the date of my so failing, at the rate applicable from time to time for the purposes of Section 233 Inheritance Tax Act 1984 or any amendment or re- enactment thereof, shall immediately become payable by me to the Commissioners of HMRC who may proceed immediately to recover the said whole balance outstanding with interest aforesaid. Any such interest shall be paid without deduction of Income Tax.