When is IHT due?

When is TYA tax due?

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HMRC say:

Payment deadlines

Transfers

You must pay Inheritance Tax on transfers into a trust or out of a trust (known as ‘exit charges’) no later than 6 months after the end of the month the transfer was made.

10-year anniversary charge

The 10-year anniversary charge can be paid up to 6 months after the 10th anniversary of the date the trust was set up.

Here: https://www.gov.uk/paying-inheritance-tax/trusts

This guidance is typically confusing.

  • For transfers the tax is due 'no later than' but for TYA tax it 'can be paid up to'.
  • For transfers the clock runs from the end of the month of the event, but apparently not for TYAs. 
  • It seems that there is no payment date for the second and subsequent TYAs.

Why the different wording when the deadline is the same (s226 IHTA 1984)? And why no mention of the 20th, 30th, etc anniversaries? 

Replies (7)

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By richard thomas
29th Aug 2023 22:37

I'm a bit surprised that an experienced commenter like you expects the "guidance" on gov.uk to be accurate and clear, and not as it so often is and is here, inaccurate and confusing. I know from the inside that most of the problem is that the style and wording is dictated to departments centrally and taken up with enthusiasm by the communications teams in the departments, to the chagrin of what tax experts are left.

Why the different wording? Who knows. Elegant variation (Fowler?) or inelegant variation newspaper style (eg "the spud-faced nipper" to avoid too many mentions of the name "Wayne Rooney" when writing about his debut goal) should have no place in explaining when an obligation arises that, if not met, can lead to penalties. Not should it inaccurately suggest the obligation arises earlier than it does, or doesn't arise at all.

The 10-year anniversary point is a classic case of undue influence by the ignorant, I suspect. The expert knows that there is not just a charge on *the* 10 year anniversary but on each 10 year anniversary. But to put that over would require common sense and the need for a moment's thought on the part of the "editor".

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Replying to richard thomas:
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By More unearned luck
30th Aug 2023 18:29

I wanted to confirm when interest starts to run in my client's case (2nd TYA) and was railing against the unhelpfulness of Gov.uk.

Yes it was Fowler's coinage. The Guardian has confessed to using "carrot-topped asthmatic" to avoid repeating Paul Scholes's name.

Gowers' book The Complete Plain Words was aimed at civil servants. Were there many copies to be found in tax offices? Clearly not in the offices of Gov.uk editors.

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Replying to More unearned luck:
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By richard thomas
30th Aug 2023 21:58

Sorry to have misunderstood your intentions here - I ought to have known better.

I think that Gower was probably issued to the DI in each tax district, though I don't recall seeing it. I do know that as a DI and Senior Inspector I was entitled to a hatstand and to use first class railway carriages in rough areas. For all Gower's (and Fowler's) weaknesses it would be much better if civil servants followed them still rather than the vacuous drivel that characterises so many official publications.

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Replying to richard thomas:
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By Hugo Fair
30th Aug 2023 23:22

It's not just any old vacuous drivel, it's HMRC vacuous drivel! (apologies to M&S).

Actually the state of GOV.UK is even less excusable now than in its infancy.

In the early days it not only had to comply with a set of 'standards' (that had nothing to do with content or accuracy but were issued by a Treasury specialist unit), all copy had to be submitted to a central team who would only authorise publication after they'd edited/vetted it (despite having no relevant knowledge of the topic).
Nowadays, 'departments' (including HMRC) have access to direct input ... but most of the specialist knowledge has left the building and we're left with 'comms' people who rate brevity and UI standard compliance way ahead of usefulness.

BTW have you seen this ... https://www.accountingweb.co.uk/tax/hmrc-policy/is-it-careless-not-to-as... ?

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Replying to Hugo Fair:
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By richard thomas
31st Aug 2023 08:32

Yes, I made a long and rambling comment on 29 August at 1126. I may add more about the role of the FTT as mentioned in one comment.

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Replying to richard thomas:
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By Justin Bryant
04th Sep 2023 11:20

I don't mind inelegant variation e.g. Columbo as "the disheveled detective".

It's basic things like "away leave agreement" rather than "a wayleave agreement" that are exasperating. See: https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim1115

But perhaps in that case you can blame US spellchecks (I nearly wrote Colombo thanks to that).

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Replying to Justin Bryant:
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By Justin Bryant
04th Sep 2023 12:56

Another recent example of HMRC's woefully unclear English causing mayhem is at paras 66 & 67 here: https://files.pumptax.com/wp-content/uploads/2023/09/01172044/FLUID-v-HM...

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