Agents should use a nomination form

The chancellor announced legislation at the Budget to render void assignments of income tax repayments ie remove a taxpayer’s ability to legally assign to a third party their income tax repayment. This took effect on 15 March 2023.

In Agent Update 106 HMRC confirms that the practical consequences of this are: 

• any assignment notified to/received by HMRC on or after 15 March 2023 will be legally void;
• any assignment documents including those signed before 15 March 2023 notified to HMRC on or after 15 March will be legally void but:
  • as a concession HMRC will continue to accept these ‘assignment documents’ but treat them as non-legally binding nominations and
  • if the taxpayer subsequently cancels these nominations the repayment will not be made to the agent; and
• agents do not need to amend assignment documents already signed by their clients but not yet...