An appeal is heard by the Special Commissioners if the legislation stipulates that jurisdiction lies with them, for example the Board's refusal to accept an error or mistake claim.
If the legislation does not stipulate that the Special Commissioners have jurisdiction, the right of appeal is to the General Commissioners, subject to the taxpayer’s right to elect for the appeal to be heard by the Special Commissioners (see AH0505). Similarly, other applications, for example an application for a closure notice, to the Commissioners are usually heard by the General Commissioners, subject to the taxpayer’s right to elect to be heard by the Special Commissioners. (TMA1970/S31(4) and TMA1970/S46(1)). If no election is made the appeal etc is heard by the General Commissioners.
In certain circumstances the appellant’s election to have the appeal heard by the Special Commissioners may be disregarded (see AH0510).
The General Commissioners may consider that it would be more appropriate for the appeal to be heard by the Special Commissioners because of the complexity of the appeal or the length of time required for the hearing (see AH0525). If so, TMA1970/S44(3A) permits them to arrange for the appeal to be transferred to the Special Commissioners having considered any representations by the parties to the appeal and if the Special Commissioners agree.
There is also provision for any question arising in connection with the subject matter of an enquiry into a taxpayer's return to be referred to the Special Commissioners for determination at any time from the day on which an officer of HMRC gave notice of enquiry into the return until the day on which the enquiry is completed. See AH2165 (ITSA enquiry) and AH2300 (partnership enquiry) for more guidance.
If you have any doubt that the Special Commissioners have jurisdiction to deal with the appeal, you should make a report to Central Policy:Tax Administration Policy as soon as the notice of appeal is received.
