Revenue Scotland and Tax Powers Act 2014 section 246

Settling matters in question by agreement

Section 246 sets out how a taxpayer and Revenue Scotland can settle a disputed matter by mutual agreement during a review, mediation or appeal, and the legal consequences of doing so.

• A settlement agreement is a formal agreement between the taxpayer and Revenue Scotland, reached during a review, mediation or appeal, to uphold, vary or cancel the original decision under dispute.
• Once entered into, a settlement agreement has the same legal effect as if the tax tribunal had made the decision itself, but it cannot be further appealed to a higher tribunal.
• The taxpayer has a 30-day cooling-off period after entering the agreement, during which they may withdraw by giving written notice to Revenue Scotland.
• If the agreement is made verbally rather than in writing, it only takes effect once its existence and terms are confirmed in writing by either party, and the 30-day withdrawal period runs from the date of that written confirmation.