DMBM656260 | Enforcement action: distraint: after the levy: withdrawal from distraint
From HM Revenue & Customs · Debt Management and Banking Manual
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If you withdraw from a distraint you should
tell the defaulter and auctioneer if appropriate
treat the distraint costs as irrecoverable (unless an undertaking has been given as in the circumstances described in DMBM656180, DMBM656210 or DMBM656220)
consider whether you can recover the liability by court proceedings in accordance with guidance.
Where county court proceedings are appropriate, follow the guidance at ‘Net proceeds leave a shortfall’ at DMBM656160.