Pre-Budget Report – Equitable Liability
It has now been confirmed that the concessionary treatment in respect of Equitable Liability will be given a statutory basis. The concession is only available when a taxpayer is wholly out of time to appeal against excessive tax demands.
The date from which the new statutory rule will apply has not yet been published but HMRC have confirmed that the current concession will remain in force until then.
The concessionary treatment only applies where the following conditions are met:
- The taxpayer can prove that the tax due figure is excessive
- The taxpayer can demonstrate what the correct amount of tax should have been, and
- All of the taxpayer’s tax affairs are brought up to date, including payment of tax, interest and penalties.