Appeals and Reviews: Transitional Guidance

Introduction

This guidance is intended to help customers and their advisors with some key questions that may arise about the transition to the new reviews, appeals and tax tribunal system on 1 April 2009. Guidance on tribunal rules and procedures is available on the Tribunal Service website

Direct tax

The new provisions for optional statutory review apply where a direct tax appeal is sent to HMRC on or after 1 April 2009.

The new review provisions also apply where a direct tax appeal was sent to HMRC before 1 April 2009 provided neither HMRC nor the taxpayer have taken any steps before that date to secure a hearing of the appeal by the General or Special Commissioners or the new tribunal.

Where a direct tax appeal was sent to HMRC before 1 April 2009 and the option to have a review is exercised before 1 April 2010, the period within which HMRC must notify the review conclusions (subject to any other period being agreed) is 90 days, rather than the usual period of 45 days.

Indirect tax

The new provisions for optional statutory review apply to indirect tax decisions (other than restoration decisions) made on or after 1 April 2009.

Where HMRC issue a VAT decision before 1 April 2009, the existing provisions for non-statutory reviews (reconsiderations) continue to apply.

Where HMRC issue an indirect tax decision (other than a VAT decision) before 1 April 2009 the existing mandatory review procedure continues to apply.

Where an appeal was made to the VAT and Duties Tribunal before 1 April 2009, and the new tribunal exercises its discretion to apply the existing costs rules, HMRC will continue to operate the Sheldon practice (under which HMRC do not seek costs from appellants in most cases).