IHTM40111 - Outstanding penalty issues: applications for clearance received in PC&S

If you work in PC&S and the taxpayer applies for clearance on form IHT 30 and you need to refer the file to Compliance Group for consideration of a penalty, you should

• acknowledge receipt of the application in a letter to the taxpayer and simply say that the application will be considered as soon as possible, and
• refer the case to Compliance Group ( IHTM36000) and note on your referral that an application for clearance has been received

If Compliance Group decide that a penalty should not be pursued, the file will be returned to you and the application can be dealt with in the normal way.

If Compliance Group make further enquiries into the penalty aspect, the Compliance Group investigator will decide whether or not to issue the certificate depending on the circumstances of the case.

If the taxpayer telephones to press for the issue of the clearance certificate you should say that you will look at the file straightaway and will call them back (either later the same day or the next day, as appropriate).

Make a note of the telephone conversation and take it by hand to the Compliance Group investigator who is considering the penalty. Explain that a return call is required.

If you still have the file or the file is with Compliance Group but you do not know who is dealing with it, take the note and the file if appropriate to a Compliance Group manager. The Compliance Group manager will allocate the case to a Compliance Group investigator who will then either

• keep hold of the file and make the return phone call themselves, or
• decide, before the return call needs to be made, that a penalty will not be pursued and give the file back to you. You can then consider the application as normal and telephone the taxpayer to say what you intend to do.