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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Ordinary Cause: Special relief - remission

Action by EIS Edinburgh

On accepting that a case is appropriate for special relief, EIS Edinburgh will

  • ask the service office to calculate the equitable liability
  • advise the defender of the reduction and
  • remit any tax etc as necessary.

Action by debt technical office

When you receive notification from EIS Edinburgh proceed as follows:

Debt remitted in full prior to decree

  • Treat the costs as irrecoverable
  • advise the defender that, having regard to the circumstances of the case and without prejudice to HMRC’s legal claim, you have been instructed by the Commissioners for HMRC not to proceed any further in the matter.

Where you have not minuted for decree you do not need to take any further action. If the writ is not returned to the court after the expiry of the period of notice the court will remove the case from the roll in due course.

If you have lodged a minute for decree plus expenses you should allow the action to process and advise the defender that the decree will not be put to execution.

If the defender is not satisfied with this undertaking and wishes to have the decree recalled you must seek advice from HMRC Solicitors Office.

Debt remitted in full and decree held

Where you do have decree for the debt you should

  • advise the defender that the decree will not be put to execution and
  • make one application for payment of the costs.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Debt remitted in part prior to decree

Where a balance of the debt remains

  • recalculate any interest accordingly and
  • write to the defender requesting payment of the reduced amount.

If payment is not made continue your ordinary cause action in the normal way and in cases where you have already minuted for decree

  • prepare a fresh minute seeking decree for the reduced sum plus expenses and
  • request the court to substitute the fresh minute for the previous minute.

Debt remitted in part and decree held

Where there is a balance of the debt remaining

  • recalculate the interest as appropriate and
  • write to the defender requesting payment of the reduced amount.

If payment is not made enforce the decree for the reduced sum plus costs where necessary.