IHTM36010 - Penalties: types of penalty

Penalties can be soughtÌýfor various acts or omissions that might prevent the collection of tax properly due.Ìý
Ìý
In general penalties arise becauseÌý

  • an account is delivered late (IHTM36021), IHTA84/S245Ìý

  • there is a failure to deliver an account ((IHTM36081),IHTA84/S245Ìý

  • 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 additionalÌýtax (IHTM36091), IHTA84/S245A (1A)Ìý

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

  • there is a failure to correct an earlier error within a reasonable timescale (IHTM36102), IHTA84/S248Ìý

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

We may also seek penalties where there is a failureÌý

  • to comply withÌýa IHTA84/S219 information notice (IHTM32231), IHTA84/S245A (2)Ìý

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

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