Taxation of Chargeable Gains Act 1992 Schedule 5AAA paragraphs 18–19

Revocation of election

Section 18–19 deals with how an exemption election made by a qualifying offshore collective investment vehicle can be revoked, who may revoke it, the procedures involved, and the right of appeal against HMRC-initiated revocations.

• HMRC may revoke an exemption election if a designated officer considers it necessary to safeguard public revenue, and must notify the fund manager in writing with reasons stated.
• The fund manager may also voluntarily revoke an election by giving notice to HMRC, and the notice must specify the date from which the election ceases to have effect.
• A revocation date earlier than the date of the notice itself may be specified by the fund manager, but only with HMRC's consent, which can be given generally or on a case-by-case basis.
• The fund manager may appeal an HMRC-initiated revocation within 30 days, and a tribunal will only allow the appeal if it considers the HMRC officer could not reasonably have been satisfied there were grounds for revocation.