SVM118090 - Statutory Notices: IHT Notices of Determination (NOD)

Under Section 221 of IHTA 1984, a NOD may be served to determine whatever matter for the purposes of the IHTA it specifies. The purpose of a NOD is to provide an effective means of dealing with both delay and contentious cases.

Once a NOD has been served, the taxpayer has 30 days in which to appeal. If he/she fails to appeal within that time, or within any extension of time granted under Section 223 of the Act, the notice is conclusive of the matters specified in it against the person on whom it is served. (NB - it is not conclusive against HMRC.) The service of a NOD and the receipt of an appeal do not preclude the continuation of negotiations and the settlement of the matter at issue by agreement.

Where possible (i.e. where we have sufficient information on which to base a reasonable and defendable opinion of value) a NOD may be preferable to an Information Notice, because

• it may enable the case to proceed in accordance with the views on valuation (or other matters) of SAV; or
• it may oblige the agents to negotiate and provide any information not yet forthcoming, but we may lay ourselves open to criticism if we are really only seeking information and ought to have used the appropriate statutory remedy.

A NOD may be used either in a delay case or in a contentious matter to be tested before the relevant tribunal.

A Notice of Determination (NOD) may also be used to counter delay in an IHT case. Usually, in IHT delay cases, you will not be in a position to form a firm opinion of value or make a decision about the availability of reliefs because of a lack of information. However, if you do have sufficient information on which to base a reasonable opinion of value/decision about the availability of a relief – and delay occurs on the part of the taxpayer/agent - an alternative course is for the IHT Litigation Team to issue a Notice of Determination, incorporating your opinion on the matter in question.

The issue of the NOD should resolve the delay. If the taxpayer does not appeal, the value or other matter stipulated in the NOD is conclusive against the taxpayer and the matter can be reported as agreed. If the taxpayer does appeal, the information or opinions provided with the appeal should allow productive negotiations to resume.