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HMRC internal manual

Oil Taxation Manual

Non-residents working on the UK continental shelf: exemption for licensee from recovery of tax - cancellation of exemption certificate


The Commissioners of HMRC may, by notice in writing to the person to whom the exemption certificate was issued (normally the field operator - not the non-resident contractor) cancel an exemption certificate from such date, not earlier than 30 days after service of the notice, as may be specified in the notice (TMA70\S77F(4)).

Grounds for cancellation

A certificate may be withdrawn when HMRC is no longer satisfied that the person who applied for it will comply with any obligations imposed on him by the Taxes Acts. Grounds for withdrawal would include failure to reply to correspondence, provide statements of profits or pay assessed tax.

Pre-cancellation warnings

Immediately the failure is detected, LB Oil & Gas will warn the non-resident or his agent that if the failure is not corrected within a reasonable time the certificate will be cancelled. If the failure is not rectified within the time scale specified in the warning letter a notice of cancellation will be sent to all licensees to which certificates have been issued. Specimen notice of cancellation (Word 28KB).