IHTM36280 - Incorrect account, information or document: repayment of penalty

You will have to rework the penalty calculation (IHTM36174) if any new facts come to light which reduces the final IHT liability after the penalty has been settled. The penalty calculation should be reworked on the revised difference between the final tax liability and the liability as it would have been if the facts were as shown in the account, information or document originally submitted. The difference between the amount of the penalty paid and the reworked penalty is the amount repayable. You should

• agree the amount repayable with the taxpayer or his agent, making it plain that any repayment will be made on an ex gratia basis
• follow the accounting procedures (IHTM36394) for making the repayment.