Inheritance Tax Act 1984 section 245A

Failure to provide information etc.

Section 245A sets out the penalties that apply when a person fails to make a required inheritance tax return, fails to notify HMRC of a deed of variation, or fails to comply with a notice requiring information or documents.

• Failure to file a return required for non-resident trustees attracts an initial penalty of up to £300, plus up to £60 per day for continued non-compliance after a court or tribunal declaration
• Failure to notify HMRC of an instrument of variation attracts an initial penalty of up to £100, plus up to £60 per day for continued non-compliance, rising to a maximum of £3,000 if non-compliance continues beyond six months after the notification deadline
• Daily penalties are avoided if the person complies before proceedings to declare the failure have commenced
• No penalty applies where the person has a reasonable excuse for the failure, provided they comply without unreasonable delay once the excuse ceases