IHTM36371 | Recording penalties: general
From HM Revenue & Customs · Inheritance Tax Manual
Late account penalties, penalties for the delivery of incorrect accounts, documentation and information and for the late reporting of amendments are recorded in a separate penalty database on COMPASS.
Late account penalties are generally set up as part of the data-capture process, although there is a separate facility to create a penalty record for a & (3) manually.
All penalties for the delivery of incorrect accounts, documentation and information under must be set up on the COMPASS database. Any other penalties levied, principally those where
there is a failure to meet the requirements of where an instrument of variation made on or after 1 August 2002 results in additional tax (),
there is a failure to comply with a notice for information (IHTM32221),
to comply with a information notice (IHTM32231),
to make a return under of names and addresses of both the settlor and trustees where a settlor is a long-term UK resident (after 6 April 2025) () or domiciled in the UK (before 6 April 2025) () and the trustees are not resident in the UK,
should be recorded on a separate Penalty database () on the Knowledge tree. This database should also be used to record any late account penalties where the calculation cannot be raised on COMPASS; for example Heritage and timber recapture charges.