Where a person who had incurred a penalty died, S100A(1) TMA 1970 allowed HMRC to impose the penalty on the personal representatives of the deceased. HMRC now accepts that S100A(1) was incompatible with Article 6 of the Convention Right and Finance Act 2007, Schedule 24, paragraph 29(b) repealed S100A(1).
In view of the uncertainty surrounding penalties sought under S100A(1) an undertaking was given to those personal representatives who offered to pay penalties. This was given in a letter which accompanied HMRC’s acceptance of their offer to pay. It stated the amount paid in respect of penalties would be repaid should the Department or the courts decide penalties arising from the default of a deceased taxpayer should not be imposed on the deceased’s personal representative.
HMRC has written to those personal representatives who were sent this letter
advising them repayment will be made. If your client(s) have entered into
a settlement where the letter was issued and you have not been contacted please
advise:
Pauline Howell
Central Policy
Tax Administration Advice
7th Floor
Wellesley House
Wellington Road North
Stockport
SK4 1EZ
Tel: 0161 475 2715
email: Pauline
Howell
