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HMRC internal manual

Securities Guidance

Giving security: unacceptable types of security

The factsheets set out the types of security acceptable to HMRC.

Security needs to be in a form that is readily accessible to HMRC. Under no circumstances should you accept

  • personal guarantees
  • charges on property
  • moveable assets such as high-value motorcars.

If the form of security they offer is unacceptable you should write to the person to explain why. You must make it clear that security is still required.

VAT Repayments

The law does not allow HMRC to retain a credit resulting from a VAT repayment return as security; the person has a choice in deciding how they wish to give security. You must get the person’s prior written authority to treat a VAT repayment as a security deposit. However, you must not delay the normal repayment process in order to get written authority as this could result in HMRC having to pay repayment supplement if the claim is ultimately repaid.