IHTM36064 - Reasonable excuse: serious illness, absence or domestic problems

In most cases it is unlikely that illness, absence or domestic problems would persist at such a level throughout the period for delivering an account. And even if the difficulties were at their worst at the crucial time towards the end of the statutory period then the taxpayer should still be able comply with their statutory duties within a reasonable time after then.

For an illness to be treated as a reasonable excuse it must generally be so serious that it prevented the taxpayer from dealing with inheritance tax affairs before the deadline and from that date to the time the completed account is sent in. Examples of such illnesses include:

  • coma
  • major heart attack
  • stroke
  • any serious mental or life-threatening illness.

If an illness involves a lengthy stay in hospital or convalescence the taxpayer is expected to have made arrangements for completing and sending in the account on time. But there may be reasons why this is not possible and where you may accept it as a reasonable excuse.

If the excuse is the serious illness of a close relative or partner, you may accept it as a reasonable excuse only if

  • the situation took up a great deal of the taxpayer’s time and attention during the period from the deadline to the date the completed account was sent in, and
  • steps had already been taken to have the account ready on time.

You should test excuses involving illness, absence or family problems but you should ask questions with sensitivity. Where possible you should consider talking with the taxpayer directly. If you are still unsure whether the excuse is reasonable when you have all the facts, you should consult with your B2 manager.