Inheritance Tax Act 1984

Penalties U.K.

[F1 245 Failure to deliver accounts. U.K.

(1) This section applies where a person (“the taxpayer”) fails to deliver an account under section 216 or 217 above.

(2) The taxpayer shall be liable—

(a) to a penalty [F2 of] £100; and

(b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the [F3 tribunal] and before the day on which the account is delivered.

(3) If—

(a) proceedings in which the failure could be declared are not commenced before the end of the relevant period, and

(b) the taxpayer has not delivered the account by the end of that period,

he shall be liable to a further penalty [F2 of] £100.

(4) In subsection (3) above “the relevant period” means the period of six months beginning immediately after the end of the period given by section 216(6) or (7) or section 217 above (whichever is applicable).

[F4 (4A) Without prejudice to any penalties under subsections (2) and (3) above, if—

(a) the failure by the taxpayer to deliver the account continues after the anniversary of the end of the period given by section 216(6) or (7) (whichever is applicable), and

(b) there would have been a liability to tax shown in the account,

the taxpayer shall be liable to a penalty of an amount not exceeding £3,000.]

(5) If the taxpayer proves that his liability to tax does not exceed a particular amount, the penalty under subsection (2)(a) above, together with any penalty under subsection (3) above, shall not exceed that amount.

(6) A person shall not be liable to a penalty under subsection (2)(b) above if he delivers the account required by section 216 or 217 before proceedings in which the failure could be declared are commenced.

(7) A person who has a reasonable excuse for failing to deliver an account shall not be liable by reason of that failure to a penalty under this section, unless he fails to deliver the account without unreasonable delay after the excuse has ceased.]

Textual Amendments

F1 Ss. 245, 245A substituted for s. 245 (27.7.1999 with effect as mentioned in s. 108(3) of the amending Act) by 1999 c. 16, s. 108(1)(3)

F2 Word in s. 245(2)(a)(3) substituted (with effect as mentioned in s. 295(5) of the amending Act) by Finance Act 2004 (c. 12), s. 295(2)(a)

F3 Words in s. 245(2)(b) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 120

F4 S. 245(4A) inserted (with effect as mentioned in s. 295(6) of the amending Act) by Finance Act 2004 (c. 12), s. 295(2)(b)

F5 245A Failure to provide information etc. U.K.

(1) A person who fails to make a return under section 218 above shall be liable—

(a) to a penalty not exceeding £300; and

(b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the [F6 tribunal] and before the day on which the return is made.

[F7 (1A) A person who fails to comply with the requirements of section 218A above shall be liable—

(a) to a penalty not exceeding £100; and

(b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the [F6 tribunal] and before the day on which the requirements are complied with.]

[F8 (1B) Without prejudice to any penalties under subsection (1A) above, if a person continues to fail to comply with the requirements of section 218A after the anniversary of the end of the period of six months referred to in section 218A(1), he shall be liable to a penalty of an amount not exceeding £3,000.]

(2) F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) A person shall not be liable to a penalty under subsection (1)(b) [F10 or (1A)(b)] above if—

(a) he makes the return required by section 218 above, [F11 or]

[F12 (aa) he complies with the requirements of section 218A above,]

(b) F13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) F13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

before proceedings in which the failure could be declared are commenced.

(5) A person who has a reasonable excuse for failing to make a return [F14 or to comply with the requirements of section 218A] shall not be liable by reason of that failure to a penalty under this section, unless he fails to make the return [F15 or to comply with those requirements] without unreasonable delay after the excuse has ceased.

Textual Amendments

F5 Ss. 245, 245A substituted for s. 245 by (27.7.1999 with effect as mentioned in s. 108(3) of the amending Act) by 1999 c. 16, s. 108(1)(3)

F6 Words in s. 245A substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 121

F7 S. 245A(1A) inserted (24.7.2002 with application as mentioned in s. 120(4) of the amending Act) by 2002 c. 23, s. 120(3)(a),(4)

F8 S. 245A(1B) inserted (with effect as mentioned in s. 295(7) of the amending Act) by Finance Act 2004 (c. 12), s. 295(3)(a)

F9 S. 245A(2)(3) omitted (1.4.2010) by virtue of The Finance Act 2009, Section 96 and Schedule 48 (Appointed Day, Savings and Consequential Amendments) Order 2009 (S.I. 2009/3054), art. 3, {Sch. para. 2(4)(a)} (with art. 4)

F10 Words in s. 245A(4) substituted (1.4.2010) by The Finance Act 2009, Section 96 and Schedule 48 (Appointed Day, Savings and Consequential Amendments) Order 2009 (S.I. 2009/3054), art. 3, {Sch. para. 2(4)(b)(i)} (with art. 4)

F11 Word in s. 245A(a) inserted (1.4.2010) by The Finance Act 2009, Section 96 and Schedule 48 (Appointed Day, Savings and Consequential Amendments) Order 2009 (S.I. 2009/3054), art. 3, {Sch. para. 2(4)(b)(ii)} (with art. 4)

F12 S. 245A(4)(aa) inserted (24.7.2002 with application as mentioned in s. 120(4) of the amending Act) by 2002 c. 23, s. 120(3)(b),(4)

F13 S. 245A(4)(b)(c) omitted (1.4.2010) by virtue of The Finance Act 2009, Section 96 and Schedule 48 (Appointed Day, Savings and Consequential Amendments) Order 2009 (S.I. 2009/3054), art. 3, {Sch. para. 2(4)(b)(iii)} (with art. 4)

F14 Words in s. 245A(5) substituted (1.4.2010) by The Finance Act 2009, Section 96 and Schedule 48 (Appointed Day, Savings and Consequential Amendments) Order 2009 (S.I. 2009/3054), art. 3, {Sch. para. 2(4)(c)(i)} (with art. 4)

F15 Words in s. 245A(5) substituted (1.4.2010) by The Finance Act 2009, Section 96 and Schedule 48 (Appointed Day, Savings and Consequential Amendments) Order 2009 (S.I. 2009/3054), art. 3, {Sch. para. 2(4)(c)(ii)} (with art. 4)

F16 246 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F16 S. 246 repealed (1.9.1994) by S.I. 1994/1813, reg. 2(1), Sch. 1 para. 20, Sch. 2 Pt. I

247 Provision of incorrect information. U.K.

(1) F17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) F17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Any person not liable for tax on the value transferred by a chargeable transfer who fraudulently or negligently furnishes or produces to the Board any incorrect information or document in connection with the transfer shall be liable [F18 to a penalty not exceeding £3,000].

F19 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F17 S. 247(1)(2) omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122, Sch. 40 para. 21(c)(i); S.I. 2009/571, art. 2

F18 Words in s. 247(3) substituted (with effect as mentioned in s. 295(9) of the amending Act) by Finance Act 2004 (c. 12), s. 295(4)(b)

F19 S. 247(4) omitted (1.4.2013) by virtue of Finance Act 2012 (c. 14), s. 223, Sch. 38 para. 52 (with Sch. 38 para. 43); S.I. 2013/279, art. 2

Modifications etc. (not altering text)

C1 S. 247 restricted (22.7.2004 for certain purposes and otherwise 1.8.2004) by Finance Act 2004 (c. 12), s. 313(4)(c) (with ss. 314, 319(5))

248 Failure to remedy errors. U.K.

(1) If after any F20 . . . information or document has been F20 . . . furnished or produced by any person without fraud or negligence it comes to his notice that it was incorrect in any material respect it shall be treated for the purposes of section 247 above as having been negligently F20 . . . furnished or produced unless the error is remedied without unreasonable delay.

(2) If after any account, information or document has been delivered, furnished or produced by any person in pursuance of this Part of this Act it comes to the notice of any other person that it contains an error whereby tax for which that other person is liable has been or might be underpaid, that other person shall inform the Board of the error; and if he fails to do so without unreasonable delay he shall be liable to the penalty to which he would be liable F21 . . . if the account, information or document had been delivered, furnished or produced by him and the case were one of negligence.

Textual Amendments

F20 Words in s. 248(1) omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122, Sch. 40 para. 21(c)(ii); S.I. 2009/571, art. 2

F21 Words in s. 248(2) omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122, Sch. 40 para. 21(c)(ii); S.I. 2009/571, art. 2

249 Recovery of penalties. U.K.

(1) All proceedings for the recovery of penalties under this Part of this Act shall be commenced by the Board, or in Scotland, by the Board or the Lord Advocate.

(2) Any such proceedings may be commenced either before the [F22 First-tier Tribunal] or in the High Court or the Court of Session and shall, if brought in the High Court, be deemed to be civil proceedings by the Crown within the meaning of Part II of the M1 Crown Proceedings Act 1947 or, as the case may be, that Part as for the time being in force in Northern Ireland.

[F23 (3) Where any proceedings are brought before the First-tier Tribunal, in addition to any right of appeal on a point of law under section 11(2) of the TCEA 2007, the person liable to the penalty may appeal to the Upper Tribunal against the amount of a penalty which has been determined under this Part, but not against any decision which falls under section 11(5)(d) and (e) of the TCEA 2007 and was made in connection with the determination of the amount of the penalty.

(3A) Section 11(3) and (4) of the TCEA 2007 applies to the right of appeal under subsection (3) as it applies to the right of appeal under section 11(2) of the TCEA 2007.

(3B) On an appeal under this section the Upper Tribunal has the same powers as are conferred on the First-tier Tribunal by virtue of this section.]

[F24 (4) The person liable to the penalty shall be a party to the proceedings.]

(5) References in this section to the Court of Session are references to that Court as the Court of Exchequer in Scotland.

Textual Amendments

F22 Words in s. 249(2) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 122(2)

F23 S. 249(3)-(3B) substituted (1.4.2009) for s. 249(3) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 122(3)

F24 S. 249(4) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 122(4)

Modifications etc. (not altering text)

C2 S. 249(1):transfer of functions (S.) (20.5.1999) by S.I. 1999/679, arts. 1(2), 2, Sch; S.I. 1998/3178, art. 2(2), Sch. 4

Marginal Citations

M1 1947 c.44.

250 Time limit for recovery. U.K.

(1) No proceedings for the recovery of a penalty under this Part of this Act shall be brought after the end of the period of three years beginning with the date on which the amount of the tax properly payable in respect of the chargeable transfer concerned was notified by the Board to the person or one of the persons liable for the tax or any part of it.

(2) F25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F25 S. 250(2) omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122, Sch. 40 para. 21(c)(iii); S.I. 2009/571, art. 2

[F26 251 Appeals against summary determination of penalties. U.K.

F27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F26 S. 251 and sidenote substituted (1.9.1994) by S.I. 1994/1813, reg. 2(1), Sch. 1 para.22

F27 S. 251 omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 123

252 Effect of award by [F28 the tribunal]. U.K.

Any penalty awarded by the [F29 tribunal] shall be recoverable by the Board as a debt due to the Crown.

Textual Amendments

F28 S. 252 sidenote: words substituted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 124(2)

F29 Word in s. 252 substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 124(3)

253 Mitigation of penalties. U.K.

The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for recovery of any penalty, and may also, after judgment, further mitigate or entirely remit the penalty.