Hello;
We've just returned from the tax office to get our IPT tax clearance forms in prep for receiving title deeds. And we got a nasty surprise that we'd appreciate some input on.
In 2014 and 2015 when we've gone to pay our IPT we have fallen under the 12,500 threshold (two co-owners each under that threshold) and had no payment due. Since 2016 IPT was supposed to be based on 2015 we expected the same outcome. Instead we were told that now we both have a responsibility for 14,250 so need to pay. So the 1980 valuation was different than 2015. But in addition, they said that this also applied retroactively for 2014 and 2015 and that we had to pay those years also, plus penalties and interest! Since our title deeds are imminent and we know that a new valuation has recently been done by the Land Registry, we guessed this was the reason, even though we've never come across anything hinting at this re-evalutaion affect previous years retroactively. So we went down and paid the total so as to get our necessary tax clearance.
Now after being able to sort through all the papers and receipts we (a) wonder why the 1980 valuations in 2014, 2015 and now 2016 are different, and (b) absolutely feel the penalties and interest are completely wrong since they themselves said there was no obligation for 2014 and 2015. We plan to go back next week when things are less hectic to double check this at the Tax Office and hopefully at least get back the penalties and interest. It wasn't all that much in the greater scheme of things, but it just seems wrong.
In any case I would very much appreciate to hear if any others here have had a similar experience ala retroactive increase in 1980 valuations and/or advice in such a situation.
For the record, each of the three years had exactly the same IPT due. So it seems that from their computer's point of view, we had simply not paid any IPT so owed for three years (based on this somewhat higher 1980 valuation), hence penalties and interest for 14 and 15. For 2014 we have a signed valuation form saying 'no obligation'. For 2015 we only have our own notes - they just shooed us away from the window saying we owed nothing (long queues!).
~rlbenson