HMRC has added a practical concession to its Standard for Agents to allow repayments to be made to agents after 15 March 2023, but on the basis of nominations rather than assignments. This means that HMRC will be able to make repayments of income tax to nominated third parties unless the client revokes the nomination. Critically, the legal position is unchanged: the taxpayer remains legally entitled to the repayment. The standard says that HMRC will confirm when this concession is to end.
The standard had previously been updated at section 2.3.3 ‘Interaction with clients’ to reflect the change in legal position for income tax repayments received after 15 March 2023 (the date of the Spring Budget). From that date, an assignment to a third party of the right to receive an income tax repayment is void.
HMRC has added a practical concession to its Standard for Agents to allow repayments to be made to agents after 15 March 2023, but on the basis of nominations rather than assignments. This means that HMRC will be able to make repayments of income tax to nominated third parties unless the client revokes the nomination. Critically, the legal position is unchanged: the taxpayer remains legally entitled to the repayment. The standard says that HMRC will confirm when this concession is to end.
The standard had previously been updated at section 2.3.3 ‘Interaction with clients’ to reflect the change in legal position for income tax repayments received after 15 March 2023 (the date of the Spring Budget). From that date, an assignment to a third party of the right to receive an income tax repayment is void.
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