Special Method Override Notice

Produced by Tolley
Special Method Override Notice

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Special Method Override Notice
  • Special Method Override Notice served by HMRC
  • When HMRC will serve a notice
  • Special Method Override Notice served by taxpayer
  • What should be contained in a Notice served by a taxpayer
  • When HMRC will reject a Notice served by a taxpayer
  • Effect of a Special Method Override Notice
  • Terminating the Special Method Override Notice
  • Appealing against a Special Method Override Notice

This guidance note provides an overview of the Special Method Override Notice (‘Notice’) which was introduced with effect from 1 January 2004. This legislation allows HMRC or a taxpayer to impose an immediate override on the results of an unfair special method until a replacement method has been agreed.

The override only affects partly exempt businesses that use a partial exemption special method where HMRC has:

  1. served a Notice on the business (see under Notice by HMRC below)

  2. approved a Notice served by the business (see under Notice by taxpayer)

Special Method Override Notice served by HMRC

HMRC can serve a notice to a taxpayer that a special method override will apply in relation to:

  1. prescribed accounting periods starting on or after the date of the Notice (or from a later date)

  2. part of a longer period which falls after the date of the Notice (or from a later date)

SI 1995/2518, reg 102A(1)–(2)

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