HM Revenue and Customs Brief 17/11
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Issued on 01 April 2011
HM Revenue & Customs (HMRC) guidance on Special Relief
From 1 April 2011, equitable liability will be replaced by a
new, statutory, special relief. HMRC have now published its guidance to
officers regarding the new relief.
Who needs to read this
Taxpayers who have received Income Tax or Corporation Tax
determinations from HMRC and whose tax affairs have been in arrears for
several years. Tax advisers who represent clients in such a position.
Previously, where customers had no statutory remedy to adjust
an excessive assessment or displace a determination because the time
limit for submitting a return had passed, HMRC would in some cases be
prepared not to pursue their legal right to recover the full amount
due. This practice was known as 'equitable liability'. The purpose of
the equitable liability concession was to provide a 'relief of last
resort' for certain taxpayers, particularly those vulnerable taxpayers
who are unable to fully engage with the tax system, for a number of
What is changing
From 1 April 2011, 'equitable liability' will be replaced by
a new, statutory, 'special relief'.
HMRC’s guidance on the new relief can be found here new
Self Assessment Claims manual guidance (PDF 53K). The
guidance will be incorporated in HMRC Self Assessment Claims manual
HMRC will no longer accept new requests for equitable
liability but will still continue to consider those claims for
equitable liability received before that date.
All of the changes outlined in this brief take effect from 1
About the Author
© Crown Copyright 2011.
A licence is needed to reproduce this article and has been republished
for educational / informational purposes only. Article reproduced by
permission of HM Revenue & Customs.
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Article Published/Sorted/Amended on Scopulus 2011-04-06 11:13:54 in Tax Articles