Commentary

A4.618A Procedure following issue of hold notice

Administration and compliance

A4.618A Procedure following issue of hold notice

A4.618A Procedure following issue of hold notice

A deposit-holder who is given a hold notice must give effect to it as soon as practicable, and within five working days at the latest1. This involves2:

  1.  

    •     determining whether there is a 'held amount' in relation to each 'relevant account'

  2.  

    •     taking action to protect the held amount, and

  3.  

    •     sending a notice to HMRC setting out the held amount

These actions are summarised in the following table and are discussed in more detail below.

StepAction by the deposit-takerDeadline
1Review the taxpayer's account(s) and determine whether there are funds in the account(s)Within five working days of the hold notice being given
2If there are such funds, determine the 'held amount' in relation to each account (see below)
3Take the required action, ie either:
(a) ensure that funds cannot be withdrawn below the specified 'held amount', or
(b) transfer the 'held amount' from the taxpayer's account(s) into a suspense account.
4Send a notice to HMRC to confirm either:
(a) the amounts held in respect of which accounts (and specifying any amounts held in respect of joint accounts), or
(b) that there is no held amount as the account balances do not exceed the safeguarded amount
Within five working days of completing Step 2
5After Step 3, notify the taxpayer (and any other relevant person, such as a joint account holder or other beneficial owner of the funds) of the held amount in relation to the accountsThere

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