AH0305 - Appeals Handbook - Settlement of Appeals by Agreement: Determination of appeal under TMA70/S54

A tax appeal is settled by agreement where

1. you and the appellant come to an agreement otherwise than in writing, either to uphold the assessment or amendment or as to the amount(s) by reference to which it is to be varied, and then either of you writes to the other confirming the agreement (TMA70/S54 (3)) or
2. you write to the appellant proposing that the amendment, assessment, decision or determination should be upheld or specifying how you propose that it should be varied and the appellant sends his written agreement or
3. you give your written agreement to the appellant's proposals as to how the amendment, assessment, decision or determination should be varied.

In cases within (a) above, you should, as soon as possible after the agreement, send the appellant written confirmation of the agreement and asking him to confirm his agreement.

As regards cases within (b) above, you should ask the appellant to give his agreement to your proposals in writing.

If no reply to the letter sent under (a) or (b) above is received within a reasonable period, list the appeal for formal determination by the Commissioners.

In order to prevent any later dispute as to the extent of the agreement, where appropriate specify items such as the year of assessment and the source of income in addition to any figures to which the amendment, assessment, decision or determination is to be varied (or the figure of the original if no variation is applicable) in the letter issued under (a) or (b) above.

Form 46A-1 can be used for appeals against a HMRC assessment or amendment and must be either signed by an Officer of HMRC Higher Officer rank or above or impressed with the his/her name stamp. If the appeal is determined by the issue of a letter signed by someone other than an Officer of HMRC Higher Officer or above form 46A-1, impressed with the Officer’s name stamp, must be issued with the letter. Retain a copy of form 46A-1, either initialled by the Officer of Revenue & Customs who signed the form sent to the appellant or impressed with the Officer’s name stamp.

Form TC622 can be used when settling a Tax Credit appeal.