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HMRC internal manual

Aggregates Levy Guidance

Unjust enrichment: Pre-undertaking procedures

Before any refunds are made to businesses which decide to use the arrangements, Regulation 26(2) requires them to sign an undertaking. Regulation 26(3) details what the business is agreeing to do. So that a business can decide whether it wants to operate the reimbursement arrangements you should send it a copy of the explanatory notes and undertaking (Word 32KB) - “undertaking in connection with the reimbursement arrangements”.

The requirements in the undertaking are necessary to ensure that any business will not be unjustly enriched by receiving a refund under the arrangements. Without being able to identify the customers who will qualify for a refund, undertakings do not achieve their purpose. Furthermore, it is reasonable for businesses to give an assurance that the money can and will be refunded.

If, for some reason, we refuse to accept an undertaking, then the affected business may either

  • have the decision reviewed by HMRC (under section 40C of the Finance Act 2001), or
  • Appeal to an independent tax tribunal (under section 40 of the Finance Act 2001).