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Customs and excise approvals

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Section 131 of Finance Act 2021, which gives HMRC the power to grant temporary approvals to businesses to continue trading while an appeal of an HMRC decision to reject a trading approval is underway, has been brought into force on 5 July 2021.

The Finance Act 2021, Section 131 (Temporary Customs and Excise Approvals) (Appointed Day) Regulations SI 2021/799 provide the formal commencement date.

The new power to grant temporary approvals will be particularly important for a business which needs to appeal an HMRC decision to revoke or refuse an approval to trade, but which is unlikely to survive that appeal process on account of being unable to trade. In such circumstances, the failure of the business would deprive it of its right to appeal. The new provisions are designed to preserve the right to appeal by granting a temporary approval to trade.

Section 131 introduced the new measures following the Supreme Court decision in OWD Ltd v HMRC [2019] STC 1402, which cast doubt on the previous assumption that the High Court had the power to require HMRC to grant temporary approvals.

Issue: 1540
Categories: News