Sometimes HMRC changes its mind after expressing its view to a taxpayer. But what if its original view represented an agreement? Rupert Shiers identifies practical points surrounding this issue from a recent tribunal decision
Sometimes HMRC changes its mind after expressing a view to a taxpayer. However when HMRC changes its mind taxpayers typically want to resist. HMRC may be barred by statute from further action. HMRC’s ability to retract is limited if the original view represented a commitment which was ‘clear unambiguous and devoid of relevant qualification’ and the taxpayer relied on the commitment before it was withdrawn (R (MFK Underwriting Agents Ltd) v IRC [1989] STC 873).
But what if the original view represented an agreement? Agreements are often expected to be binding. This is true for agreements with...
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