IHTM36010 - Penalties: types of penalty

Penalties can be sought for various acts or omissions that might prevent the collection of tax properly due. 
 
In general penalties arise because 

  • an account is delivered late (IHTM36021), IHTA84/S245 

  • there is a failure to deliver an account ((IHTM36081),IHTA84/S245 

  • there is a failure to meet the requirements of IHTA84/S218A where an instrument of variation made on or after 1 August 2002 results in additional tax (IHTM36091), IHTA84/S245A (1A) 

  • an account, information or document is incorrect (IHTM36102), IHTA84/S247 or 

  • there is a failure to correct an earlier error within a reasonable timescale (IHTM36102), IHTA84/S248 

  • there is a failure to comply with a IHTA84/S219A notice for information (IHTM32221), IHTA84/S245A (3). 

We may also seek penalties where there is a failure 

  • to comply with a IHTA84/S219 information notice (IHTM32231), IHTA84/S245A (2) 

  • to make a return under IHTA84/S.218 of names and addresses of both the settlor and trustees where a settlor is a long-term UK resident (after 6 April 2025) (IHTM47000) or domiciled in the UK (before 6 April 2025) (IHTM13000) and the trustees are not resident in the UK, IHTA/S245A(1) 

The situations that give rise to the latter group of penalties are rarely seen and they are dealt with by Litigation.