Inheritance Tax Act 1984 section 245

Failure to deliver accounts

Section 245 sets out the penalties that apply when a person fails to deliver an inheritance tax account within the required time limits under sections 216 or 217.

• An initial penalty of £100 applies for late delivery, with an additional £100 penalty if the account remains undelivered six months after the deadline
• A daily penalty of up to £60 may be charged for each day after a court or tribunal has declared the failure and before the account is delivered
• If the failure continues beyond twelve months after the original deadline and tax would have been shown in the account, a further penalty of up to £3,000 may apply
• No penalty arises where the taxpayer can demonstrate a reasonable excuse for the late delivery, provided the account is then submitted without unreasonable delay once the excuse no longer applies

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