AH0301 - Appeals Handbook - Settlement of Appeals by Agreement: Settlement by agreement

Tax, and most other, appeals may be settled by agreement between an Officer of HMRC and the appellant (TMA70/S54). The settlement of an appeal by agreement between an Officer of HMRC and the appellant (or his agent) is as binding as if the Commissioners had determined the appeal (TMA1970/S54 (1)).

If possible settle the appeal by agreement with the appellant without recourse to a hearing by the Commissioners.

An appeal is determined by agreement where

• you and the appellant agree that the assessment, amendment, determination or decision shall either be upheld or varied in a particular manner and the appellant does not repudiate or resile from the agreement within 30 days from the date of the agreement
• the appellant notifies you that he desires to withdraw his appeal and you do not, within 30 days after the notification was given, notify him that you are unwilling to treat the appeal as withdrawn (see AH0330).

TMA70/S54 (2) allows the appellant 30 days to repudiate or resile from an agreement. Where a taxpayer is unrepresented and you have put forward figures for agreement you should draw the taxpayer's attention to the provisions of TMA70/S54 (2).

An agreement with an agent or person acting on behalf of the appellant has the same standing as an agreement reached with the appellant (TMA70/S54 (5)) and see also CIR v West 64TC196).

The provisions of TMA70/S54 do not apply to appeals against NIC and statutory payments decisions but Regulation 11 of The Social Security Contributions (Decisions and Appeals) Regulations 1999 (SI1999/1027) contains similar provisions.