This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Civil Penalties

Reviews and appeals: Withdrawing a penalty

If it is decided to withdraw a penalty the person should be notified in writing. A copy of the letter should be forwarded to the Cumbernauld Tax Accounting Centre.

In cases where a penalty has been withdrawn after an appeal has been submitted you should ask the person to write formally to the Tribunal centre withdrawing the appeal.