Market leading insight for tax experts
View online issue

Kyte: when does a settlement agreement bind HMRC?

Speed read

It is well established that HMRC may settle back tax matters by way of contractual agreement. The normal rules of contract law govern whether a binding agreement has been reached. Taxpayers seeking to rely on contractual settlements need to have regard to those rules because HMRC will, quite properly, not regard itself as bound if exchanges fall short of a binding agreement. Equally there may be occasions where HMRC seek to avoid an agreement but will not be able to do so if the agreement is contractually binding. The High Court’s decision in Kyte provides a warning to taxpayers not to rely on informal assurances or exchanges of correspondence falling short of a binding contract.

If you are not a subscriber, subscribe now to read this content.
If you are already a subscriber, sign in
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.