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HMRC internal manual

Appeals reviews and tribunals guidance

First-tier and Upper Tribunals: Preparing for tribunal: Withdrawal of case before the tribunal

Either the customer or HMRC may withdraw all or part of its case at any time before the tribunal makes its decision by

  • writing to the tribunal, or
  • saying so during the hearing.

The tribunal will notify the other parties of any withdrawal.

In First-tier Tribunal cases this rule is subject to the normal rules on settlement of an appeal (S54 TMA 1970 or equivalent (direct taxes) and S85 VATA 1994 (VAT) (indirect taxes)). The rule does not require a settlement to be made before the case can be withdrawn, neither does withdrawal, in itself, constitute a settlement.

The party who withdrew their case can apply to have it reinstated by writing to the tribunal within 28 days (First-tier Tribunal) or 1 Month (Upper Tribunal) of

  • the date the tribunal received the notification of withdrawal, or
  • the date of the hearing at which the party said they were withdrawing their case.

If a party withdraws their case, the effect will be as if the tribunal had decided against their case (or relevant part of it) and had disposed of the proceedings (or relevant part of them). But see ARTG8420 where we decide not to defend a case at tribunal.

If the customer has notified their appeal to the tribunal, and negotiations are continuing towards resolution of the dispute, see ARTG8440.

Where a case is before the Upper Tribunal, the party must obtain the consent of the Upper Tribunal before withdrawing their case, except where the withdrawal is of an application for permission to appeal.

If a customer applies to withdraw its case from the Upper Tribunal, the tribunal’s caseworker should consider the withdrawal application and if necessary take appropriate action to ensure that HMRC’s position (in particular relating to any disputed tax payments or claims and to costs) is protected.