Commentary

A5.707 Settlement of appeals by agreement

Administration and compliance

A5.707 Settlement of appeals by agreement

A5.707 Settlement of appeals by agreement

The general power

At any time before a final determination of an appeal by the tribunal, an appeal may be settled by agreement, between HMRC and the appellant. Such an agreement has the same effect as if the tribunal had formally determined the appeal1. An appeal can be determined in this way even if a partial hearing of it by tribunal has taken place, so long as the tribunal has not made a formal determination.

Since the introduction of self assessment, the number of cases where settlement by agreement is needed has been much reduced because:

  1.  

    (a)     there is no right of appeal against a self-assessment

  2.  

    (b)     in the absence of a return, an HMRC officer makes a 'determination' of the liability (not an estimated assessment), against which there is no right of appeal, and

  3.  

    (c)     an HMRC amendment to a self-assessment or a restriction of a claim, which gives rise to most appeals, will only be made after an enquiry into a return or claim, during which there will usually be negotiations which may result in agreement without the need for an appeal

Where the agreement is not in writing, it will only be valid if it is confirmed by notice in writing by one of the parties to the other, and the date of that notice is regarded as the time of the agreement2. Within 30 days from the time of the agreement, the appellant may give notice to the inspector that they desire

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial