IHTM10806 - Accountability: telling us about amendments

Strictly speaking taxpayers or agents should tell us about amendments to the values in an estate within 6 months of discovering that the original account was incorrect (IHTM10701).

But, agents can save up amendments and tell us about them in one go as long as they do not fall within the following criteria:

• We have written to the personal representatives to tell them that we are starting a compliance check,
• The deceased’s estate on death includes a qualifying interest in possession in settled property (IHTM16062) or a gift with reservation (IHTM14301),
• There is an overall change in the value of the estate of more than £50,000 - before any exemptions or reliefs are deducted,
• The amendments relate to changes in the value of land or buildings or unlisted shares,
• The amendments relate to a claim for loss on sale of land (IHTM33000) or shares (IHTM34000),
• Assets have been sold on which tax is being paid by instalments (IHTM30191).

If the customer is saving up amendments, they should tell us about them by sending us form C4 Corrective Account or C4(S) Corrective Inventory when:

• they believe that these are the final amendments to the value of the estate, or
• 18 months have passed since the date of death,

whichever is earlier.

If the estate has not been settled within 18 months the customer will need to start telling us about amendments as they arise, again.

We will still charge interest on any unpaid tax on cases where the customer decides to save up amendments. You can advise the customer to send us a payment on account if they want to stop interest accruing.

As long as the estate and amendments follow the criteria for saving up amendments we will not charge penalties for not telling us about the amendments within 6 months of discovering them.