Inheritance tax manual - Section 27 - Part 3 : Notices of Determination

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Part 3 : Notices of Determination

27.53 Subsequent action by HMRC(IHT)

Following receipt of an Appeal Report from CEO (DVS) (see 27.49 above), HMRC(IHT) may carry out further investigations or seek to obtain further information from the parties and may subsequently decide that there is some merit in investigating whether it is still possible to reach a negotiated settlement and request the DV to re-open negotiations. In these circumstances the DV must ensure that negotiations are actively pursued and that the HMRC(IHT) caseworker is kept aware of all developments.

Alternatively HMRC(IHT) may well decide to explore the possibilities of reaching a settlement on taxation grounds and, if successful, they will advise the DV accordingly. The case should then be reported in accordance with 27.46b) above.

If it proves impossible to reach a settlement, HMRC(IHT) will serve a Notice of Determination (NOD) on the parties under s.221 IHTA 1984.

27.54 Appeals against a Notice of Determination

The parties have 30 days within which to appeal against a NOD.

If no appeal is received, the value or issue, is then settled and HMRC(IHT) will proceed to the next appropriate step with the parties. HMRC(IHT) will advise the DV, via CEO (DVS), of the outcome. The file can then be closed.

If an appeal is received, the details will normally be passed on to the Revenue Solicitor so that a reference can be made to either the Lands Tribunal (in disputes concerning the value of land and buildings) or the Special Commissioners (in other cases). When the papers are passed to the solicitor, HMRC(IHT) will advise CEO (DVS) who, in turn, will advise the DV, who should then proceed in accordance with Section 37.

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