IHTM36371 - Recording penalties: general

Late account penalties, penalties for the delivery of incorrect accounts, documentation听and information and for the late reporting of amendments are recorded in a separate penalty database on COMPASS.听
听
Late account penalties are generally set听up as part of the data-capture process, although there is a separate facility to create a penalty record for a IHTA84/S245(2) & (3) manually.听
听
All penalties for the delivery of incorrect accounts, documentation听and information under IHTA84/S247 must be set up on the COMPASS database. Any other penalties levied, principally those where听

  • 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 additional听tax (IHTM36091), IHTA84/S245A(1A)听

  • there is a failure to comply with听a IHTA84/S219A notice for information (IHTM32221), IHTA84/S245A(3)听

  • to comply with听a IHTA84/S219 information notice (IHTM32231), IHTA84/S245A(2)听

  • to make a return under IHTA84/S218 of names and addresses of both the settlor and trustees where a settlor听is听a long-term UK resident听(after 6 April 2025)听(IHTM47000)听or听domiciled in the UK听(before 6 April 2025)听(IHTM13000)听and听the trustees are not resident in the UK, IHTA84/S245A(1)听

should be recorded on a separate Penalty database (IHTM36372) on the Knowledge tree. This database should also be used to record any late account penalties where the calculation cannot be raised on COMPASS;听for example听Heritage and timber recapture charges.