295Amendments to penalty regimeU.K.
(1)The Inheritance Tax Act 1984 (c. 51) is amended as specified in subsections (2) to (4).
In section 245 (failure to deliver accounts)—
(2)(a)in subsections (2)(a) and (3), for “not exceeding” substitute “ of ”;
(b)after subsection (4) insert—
“(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.”
(3)In section 245A (failure to provide information etc)—
(a)after subsection (1A) insert—
“(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.”;
(b)in subsection (5)—
(i)after “failing to make a return” insert “ , to comply with the requirements of section 218A ”;
(ii)after “fails to make the return” insert “ , to comply with the requirements of section 218A ”.
(4)In section 247 (provision of incorrect information)—
F1(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)in subsection (3), for the words from “, in the case of fraud” to the end substitute “ to a penalty not exceeding £3,000 ”.
(5)Subsection (2)(a) above has effect in relation to a failure by any person to deliver an account under section 216 or 217 of the Inheritance Tax Act 1984 (c. 51) where the period under section 216(6) or (7) or 217 of that Act (whichever is applicable) within which the person is required to deliver the account expires after six months from the day on which this Act is passed.
(6)Subsection (2)(b) above has effect—
(a)in relation to a failure by any person to deliver an account under section 216 of the Inheritance Tax Act 1984 where the period under section 216(6) or (7) of that Act (whichever is applicable) within which the person is required to deliver the account expires after the day on which this Act is passed; and
(b)in relation to such a failure to deliver such an account where that period expires on or before the day on which this Act is passed, as if, in the subsection (4A) inserted in section 245 of that Act by subsection (2)(b) above, for the words “anniversary of the end of the period given by section 216(6) or (7) (whichever is applicable)” there were substituted “ end of the period of twelve months beginning with the day on which the Finance Act 2004 is passed ”.
(7)Subsection (3)(a) above has effect—
(a)in relation to a failure to comply with the requirements of section 218A of the Inheritance Tax Act 1984 where the period of six months referred to in subsection (1) of that section expires after the day on which this Act is passed; and
(b)in relation to such a failure to comply with those requirements where that period expires on or before the day on which this Act is passed, as if, in the subsection (1B) inserted in section 245A of that Act by subsection (3)(a) above, for the words “anniversary of the end of the period of six months referred to in section 218A(1)” there were substituted “ end of the period of twelve months beginning with the day on which the Finance Act 2004 is passed ”.
(8)Subsection (3)(b) above has effect in relation to a failure to comply with the requirements of section 218A of the Inheritance Tax Act 1984 where the period of six months referred to in subsection (1) of that section expires after the day on which this Act is passed.
(9)Subsection (4) above has effect in relation to incorrect accounts, information or documents delivered, furnished or produced after the day on which this Act is passed.
Textual Amendments
F1S. 295(4)(a) omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 21(l); S.I. 2009/571, art. 2