IHTM36108 - Incorrect account, information or document: time limit for seeking penalties

You cannot

• proceed for a penalty before the First-tier Tribunal, or
• include a penalty in a negotiated settlement

if the time limit for seeking penalties has expired.

The time limit is 3 years after the date on which the amount of tax properly payable on the chargeable transfer concerned is notified to the person or one of the persons liable for the tax or any part of it, IHTA84/S250 (1). This will normally be 3 years from the date of the first informal calculation, notice of determination (NOD) (IHTM37001) or letter issued to the taxpayer or their agent that shows their final tax liability. You should therefore bear in mind the need to give penalty cases priority.