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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...
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