We recently submitted an Assent to the Land Registry for the transfer of property to a beneficiary. The Land Registry have completed the transfer, but because the Grant shows a value above £325K they have entered a “Notice of the possibility of an Inland Revenue charge in respect of such inheritance tax as may arise as a result of the death of …” onto the Property Register.
We have one month in which to have this Notice removed by either confirming no IHT was payable and why, or that all IHT has been paid. This is not a problem, but I have never come across this before and just wondered if anyone else has?
The charge available to HMRC is a statutory charge and is in respect of unpaid IHT [IHTA 1984 ss. 237, 238]. HMRC are not required to enter a notice with LR in respect of the charge but may do so (on Form AN1 I believe).
Thank you Malcolm, just not seen this before, and first thoughts were that the Grant itself is evidence that all IHT has been paid, but I suppose that’s not the case where the instalment option is taken up.
Saw my first one of these two weeks ago (when acting for a buying party) so either this post is a co-incidence or there may have been a change of practice on the part of the LR/HMRC.
Bad timing as I was probably overly suspicious with the one that I found.
Thank you. I did speak with the Land Registry, who tell me this has been their procedure for at least five years - which did make me suspicious too, as I know I have had plenty of Assents through in that period without this. Maybe I will address it when submitting an application now, or they could ask the question on the AS1.
Hi all. I am in the process of buying a property with a similar charge. May I ask what the process is for such a charge to be removed? Does it need any IHT owed to be settled as part of the sale?