SCHEDULES

SCHEDULE 51Time limits for assessments, claims etc

Inheritance tax

5

IHTA 1984 is amended as follows.

6

In section 131 (transfers within 7 years before death: the relief), after subsection (2) insert—

“(2ZA)

A claim under subsection (2)(b) must be made not more than 4 years after the transferor's death.”

7

In section 146(2)(a) (Inheritance (Provision for Family and Dependants) Act 1975), after “claim for the purpose” insert “ not more than 4 years after the date on which the order is made ”.

8

In section 150 (voidable transfers), insert at the end—

“(3)

A claim under this section must be made not more than 4 years after the claimant knew, or ought reasonably to have known, that the relevant transfer has been set aside.”

9

In section 179 (sale of shares etc from deceased's estate: the relief), after subsection (2) insert—

“(2A)

A claim under this Chapter must be made not more than 4 years after the end of the period mentioned in subsection (1)(a).”

10

In section 191 (sale of land from deceased's estate: the relief), after subsection (1) insert—

“(1A)

A claim under this Chapter must be made not more than 4 years after the end of the period mentioned in subsection (1)(a).”

11

(1)

Section 240 (underpayments) is amended as follows.

(2)

In subsection (2), for “six years” substitute “ 4 years ”.

(3)

For subsection (3) substitute—

“(3)

Subsection (2) has effect subject to subsections (4) and (5).

(4)

Proceedings in a case involving a loss of tax brought about carelessly by a person liable for the tax (or a person acting on behalf of such a person) may be brought at any time not more than 6 years after the later of the dates in subsection (2)(a) and (b).

(5)

Proceedings in a case involving a loss of tax brought about deliberately by a person liable for the tax (or a person acting on behalf of such a person) may be brought at any time not more than 20 years after the later of those dates.

(6)

Subsection (7) applies to any case not falling within subsection (2) where too little tax has been paid in respect of a chargeable transfer, provided that the case does not involve a loss of tax brought about deliberately by a person liable for the tax (or a person acting on behalf of such a person).

(7)

Where this subsection applies—

(a)

no proceedings are to be brought for the recovery of the tax after the end of the period of 20 years beginning with the date on which the chargeable transfer was made, and

(b).

at the end of that period any liability for the tax and any Inland Revenue charge for that tax is extinguished.

(8)

In relation to cases of tax chargeable under Chapter 3 of Part 3 of this Act (apart from section 79), the references in subsections (4), (5) and (6) to a person liable for the tax are to be treated as including references to a person who is the settlor in relation to the settlement.”

12

After that section insert—

“240AUnderpayments: supplementary

(1)

This section applies for the purposes of section 240.

(2)

A loss of tax is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss.

(3)

Where—

(a)

information is provided to Her Majesty's Revenue and Customs,

(b)

the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and

(c)

that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs,

any loss of tax brought about by the inaccuracy is to be treated as having been brought about carelessly by that person.

(4)

References to a loss of tax brought about deliberately by a person include a loss of tax brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.”

13

In section 241(1) (overpayments), for “six years” substitute “ 4 years ”.