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HMRC have confirmed they will withhold income tax repayments when officials believe a claim that produces the sum constitutes avoidance, and when the department is challenging or considering challenging claims by enquiry.
The Revenue will make an appropriate provisional refund if it agrees a claim does not depend on avoidance. If the department’s view is that the effect of a scheme was to inflate or accelerate a claim to relief artificially, officials will work with taxpayer and agent to make an appropriate provisional repayment to reflect the portion not in dispute.
HMRC have confirmed they will withhold income tax repayments when officials believe a claim that produces the sum constitutes avoidance, and when the department is challenging or considering challenging claims by enquiry.
The Revenue will make an appropriate provisional refund if it agrees a claim does not depend on avoidance. If the department’s view is that the effect of a scheme was to inflate or accelerate a claim to relief artificially, officials will work with taxpayer and agent to make an appropriate provisional repayment to reflect the portion not in dispute.
The taxman will also attempt to effect being given to claims to other forms of personal relief that may constitute avoidance. The approach does not cover National Insurance contributions – where claims do not usually arise as a result of avoidance – but relates to claims made outside tax returns, where HMRC may enforce payment of a tax debt that otherwise might have been offset against a rebate.
More information is available from Revenue & Customs Brief 28/13.
A somewhat truncated version of the original article that appeared in print with examples-shame.