Consideration of Partial Exemption special methods: the declaration: rights of appeal
A business can appeal HMRC’s decision to serve a Notice under this measure. If the case progressed to tribunal, it would be for HMRC to establish its case for serving the Notice and for the business to disprove HMRC’s case. We take the view that the court will need to determine whether the statutory conditions had been satisfied i.e. whether the method was fair and reasonable for the business and, if not, whether the business knew, or ought reasonably to have known this at the time of its Declaration. A business’s rights under Extra-Statutory Concession 3.5: ‘Misdirection’ are unaffected.
Businesses can also appeal any assessments raised by HMRC under the Notice and we take the view that the tribunal could amend such assessments as it saw fit.