When a final decision adverse to HMRC is given by the Courts,
assessments, self assessment returns, amendments to self
assessments, claims, NICs decisions, etc., which are still open and
where the same point arises may be dealt with in accordance with
that decision. Any special instructions as to the interpretation
and application of the decision should be followed.
The effect of the adverse decision may be taken into account
in settling any appeal whether or not the point in issue in that
decision had been included in the original grounds for appeal.
A self assessment return, taxpayer amendment, or a claim made
outside a return, is for this purpose to be regarded as
“open” where the taxpayer is still in time to make an
amendment or where HMRC has opened, but not closed, an enquiry into
the return, amendment, or claim.
A discovery assessment, HMRC amendment to a Return or Claim
or disallowance of a claim is, for this purpose, to be regarded as
remaining open until the expiry of the time-limit within which
notice of appeal could have been given by the taxpayer or the date
on which any appeal was determined (whether by agreement or at a
personal hearing), if later.
Where an appeal is settled by agreement under Section 54(1)
TMA, the date on which it is deemed to be determined is the date of
the agreement (see AH0305).
As regards Employer Income assessments and self assessments
made after a change of practice see .
An adverse decision of the High Court or Court of Appeal in
England or Northern Ireland, or of the Court of Session in
Scotland, should not be acted upon as final until it is known that
HMRC has decided not to appeal against the decision. You will be
notified of the finality of important decisions by means of an SCS
memo; other cases will be dealt with in a Tax Case Review. If you
are in doubt about the finality of a Court judgement which may be
relevant to a case you are dealing with you should contact the
technical specialist who deals with the subject matter of the
appeal. The publication of a case in “Reports of Tax
Cases” volumes indicates that such decisions are final.
Finality cannot be assumed on the issue of a Tax Case Leaflet.
