Income Tax (Trading and Other Income) Act 2005 section 608Y

Appeals against assessments

Section 608Y restricts the ability of taxpayers to postpone payment of tax charged under the offshore receipts in respect of intangible property rules (section 608A) while they pursue an appeal.

• The normal rules allowing taxpayers to postpone tax payments during an appeal do not apply to tax charged under the offshore intangible property receipts provisions.
• No agreement can be reached to delay payment of the tax or any associated interest while an appeal is ongoing.
• If there is a further appeal, HMRC can apply to the relevant court or tribunal for a direction that the usual tax postponement rules do not apply, where this is considered necessary to protect tax revenue.
• These restrictions do not apply to liabilities arising from a recovery notice issued under section 608O (which allows HMRC to require payment from a person in the same control group as the taxpayer).