The CIOT has published an HMRC “clarification” over the interpretation of IHTA 1984, s. 240 (underpayments). The HMRC letter follows a meeting between HMRC’s IHT Policy team and the Society of Trust & Estate Practitioners (STEP).
The HMRC letter addresses the following questions:
- Does s. 240(2) only operate the four year time limit if tax is actually payable?
- What is meant by “payment [in accordance with an account duly delivered to the board] is made and accepted in satisfaction of the tax.”?
- What if you do not hear from HMRC and it is in relation to an IHT 100 account as HMRC are not compelled to issue a certificate of discharge then under s. 239 anyway?
The full text of the letter is reproduced on the CIOT site.