I11.703 Fraud and negligence
Careless or deliberate errors
From the dates set out below, the FA 2007, Schedule 24 penalty regime for careless or deliberate errors applies to inheritance tax as it applies to other direct taxes1. The commencement dates are:
(a) for documents produced under the excepted estates provisions of IHTA 1984, s 256, estates where the date of death was on or after 1 April 2009;
(b) for repayment claims, 1 April 2010;
(c) in any other case, where the inheritance tax liability arises on or after 1 April 2010.
From the same commencement dates as set out above, the FA 2007, Schedule 24 penalty regime also applies to errors in IHT documents which are attributable to another person2. Where a document contains an inaccuracy which leads to an understatement of tax or inflated repayment claim, and the inaccuracy is attributable to the person concerned deliberately supplying false information or deliberately withholding information, the FA 2007, Schedule 24 penalty regime will apply. See Division A4.5 for an analysis of the penalty regime and T1.132 for penalty rates etc.
Fraud or negligence
If a person who is not liable for IHT (for example, the solicitor, accountant or valuer of an accountable person) fraudulently produces to HMRC any incorrect information or document in connection with a chargeable transfer he is liable to a penalty not exceeding £3,0003. It has been rare for a penalty for negligence to be sought from a practitioner acting solely as an agent. This is because the responsibility
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