SVM108150 | Inheritance Tax: Teamworking Arrangements with the IHT Caseworker

This section deals with cases allocated to valuers.

You should notify the compliance caseworker at the earliest possible opportunity of the following:

• If it is agreed or there is a strong possibility that business relief (BR) is not due as claimed;

• If it is accepted that BR is due when it was not originally claimed;

• If a meaningful adjustment in value is likely;

• If you discover that a previously undisclosed sum was due to an estate from the company or that a sum due is substantially greater than that stated on the IHT Return. You should bear in mind that sums due by way of a loan account, undrawn dividends and so on do not qualify for BR. You should also inform the caseworker of any possible omissions, for example, where a balance sheet shows sums due to directors but no breakdown is given. See SVM108080;

• If there is a change in relation to the instalment option being exercised by the customers.

For example, you note that the tax is being paid by instalments and interest relief has been claimed. If the company is an investment company, interest relief is not available and you should notify the caseworker accordingly. Alternatively, tax on a deceased's shares may be being paid by instalments and the company has been sold or the shares have been sold. The instalment option ceases on sale and you should notify the caseworker. See SVM108100.

• If you become aware of events which could affect the amount of IHT payable.

For example, where there is a request to value transfers within 7 years of a deceased's death for CGT purposes that aren’t reflected in the valuation request at the date of death. Full details should be given to the caseworker to consider any additional valuation requirements.

Where you are reporting omissions or adjustments, you should inform the caseworker how the adjustment or omission came to light so that the caseworker can consider whether penalties are appropriate.

Depending on the circumstances of your valuation and the IHT requirements a case conference can be useful and can be arranged at any time.

A case conference should always be considered if a case has not been settled within 12 months of referral to SAV

A case conference should be viewed as an opportunity for the caseworker and the SAV valuer to meet, assess all aspects of progress and decide on the most appropriate course of action.

It is suggested that further case conferences take place at six monthly intervals after the initial case conference.

The caseworker will prepare a note of each case conference and let you have a copy. You should check it and ensure it correctly reflects the valuation position.

Additional Guidance: SVM150000