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HMRC internal manual

Securities Guidance

From
HM Revenue & Customs
Updated
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Giving security: performance bonds: cancelling a performance bond

Cancellation of the performance bond will only occur in one of the following circumstances.

Security no longer required

If security is no longer required you should return the bond to the financial institution for cancellation with Performance bond letter 24.

Payment to HMRC by the financial institution

Where it is necessary for a financial institution to pay to HMRC the amount specified on the bond you should issue Performance bond letter 24a. You must also warn the person of the action you are taking, see SG67100.

Once security has been provided and set-off against the person’s debt the financial institution’s own liability has been discharged and the bond should be returned for cancellation with Performance bond letter 24b.

The Notice of Requirement was invalid

If an English court, European court, or a tribunal, decide that a Notice of Requirement was invalid we can appeal against that decision. If we decide not to appeal, or we fail to appeal within the time limit set by the court, we must return the bond to the financial institution.