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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

From
HM Revenue & Customs
Updated
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Schedule 2 share incentive plan (SIP): Notification & Enquiries: Appeals (paragraph 81K)

A company may appeal against –

 

  • HMRC’s decision to issue a closure notice in relation to a “serious” or “less serious error” (see ETASSUM27150);
  • that the company is liable for a penalty for failure to give a return for a tax year (paragraph 81C) by the required date, or if the return is not given in accordance with paragraph 81D or contains an inaccuracy, which is careless or deliberate and is not corrected as required by paragraph 81B(11) (see ETASSUM27160);
  • HMRC’s decision to issue a default notice if the scheme organiser does not make the “repair” or correct a “less serious error” within the 90 day period (see ETASSUM27150);
  • HMRC’s decision to specify or not specify a date upon which tax advantaged status is withdrawn in relation to a “serious” or “less serious error” (see ETASSUM27150);
  • the amount of any penalty payable; and
  • a decision to withdraw Corporation Tax deductions in relation to a Schedule 2 SIP.

 

An appeal must be made within 30 days of the closure notice, default notice or notice of assessment of the penalty. Appeals should be made in writing to the Employee Shares & Securities Team -

Post: Room G47, 100 Parliament Street, London, SW1A 2BQ

E-mail:

 

Where an appeal in relation to a decision is notified to a Tribunal, the Tribunal may affirm or cancel the decision or substitute another decision. The Tribunal may also substitute another decision in relation to an appeal made in relation to paragraphs 81K(2) (a decision that the requirements of Parts 2-9 of Schedule 2 are not met or have not been met and that situation is either “serious” or “less serious” or a decision to specify or not specify a relevant time for the closure notice) and 81K(3)(b) (a decision to specify or not specify a date upon which tax advantaged status is withdrawn in relation to a default notice) – see ETASSUM27150. Where an appeal in relation to the amount of a penalty is notified to a Tribunal, the Tribunal may affirm the amount of the penalty or substitute the amount with another amount.

For further information on appeal procedures refer to the Appeals, Reviews and Tribunals Guidance https://www.gov.uk/government/collections/complaints-and-appeals-hmrc-manuals