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HMRC internal manual

Holding and Movements - Financial Securities Assurance

From
HM Revenue & Customs
Updated
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Premises guarantees: What levels do we require?

You should normally set the following levels:

Potential duty on month-end stock holding Level of security
   
<£100,000 Nil
>£100,000 but <£400,000 £100,000
>£400,000 but <£1m 25% of potential duty
>£1m but <£25m £250,000
>£25m but <£25m 1% of potential duty
>£100m £1m

The level of security required for a new trade facility warehouses is calculated as perthe above.

For new general storage and distribution warehouses, the above applies, but with a minimumlevel of security of £250,000.

Existing warehouse keepers wishing to open another warehouse may qualify for a reduction.

Where there is evidence of risk beyond those generally associated with warehoused goods,financial security additional to that outlined above may be required. However, where thereis a reasonable basket of evidence to support that the trader is a revenue risk you shouldconsider rejecting the registration, as opposed to imposing a requirement for a higherlevel of financial security. Similarly, where an existing warehouse keeper’scompliance gives cause for concern, the imposition of a financial security requirementshould not be used where it would be more appropriate to revoke the warehousekeeper’s authorisation.