Home > Legal Articles > The basic principles of agreeing a settlement of tax enquiries

The basic principles of agreeing a settlement of tax enquiries

Posted on Monday, 27th May 2013 by

Photo Credit: Images_of_Money via Compfight cc

In 2007, HMRC published the litigation and settlement strategy (LSS), which was revised in July 2011 following some key cases.

The LSS sets out the principles and standards which HMRC should apply when settling disputes with taxpayers. The general principles include:

  1. Each dispute should be settled on its own merit. There should be no trade-off between unrelated points and no package deals should be offered.
  2. If a dispute arises from an all-or-nothing point, the settlement terms should be on all-or-nothing terms.
  3. Tax, interest and penalties should be not be undercharged in order to reach a quick settlement.

In tax avoidance cases, if HMRC’s position is strong, HMRC should not settle for less than 100% of the tax and interest due.

HMRC is responsible for collecting and managing the public revenue and by adhering to this approach the aim is to act consistently.

If it is possible to reach a settlement then HMRC are open to resolving matters without resorting to litigation.  In many cases this is the best possible outcome, particularly if all relevant factors (such as interest, penalties and consequential tax charges) are taken into consideration at the time.

For assistance with HMRC enquiries, please contact Leanne Hathaway, our in house Chartered Tax Adviser.

Leanne is a Chartered Tax Adviser, specializing in advising on UK tax matters but also including overseas tax as needed. Leanne is head of Taxation Services at EHL Solicitors in Leicester.

Keep up to date with our daily blogs through the Edward Hands & Lewis mobile app, just search Edward Hands on the iPhone or Android store to download our app for free.



Talk to our legal team

The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.

1 Step 1

Quick Quote

Your Nameyour full name
Contact Number
Post Codeyour full name
Your Messagemore details
0 /

Leanne Hathaway - Tax and Trusts
Leanne Hathaway - Tax and Trusts
leanne.h@ehlsolicitors.co.uk 01455 274 170
Related author articles
Article tags

Map and pin icon
Sign up to our newsletter
  ERROR: 8 - CURL error: