SDLTM24760 | Withdrawal of Relief: Revocation of RIF entry notices

As explained at IFM9650, where HMRC has reasonable grounds to believe that the operator of a RIF did not have the intention, or could not reasonably have had the expectation referred to in the entry notice declaration, then HMRC can issue a notice to the operator of the RIF, to determine that the RIF is treated as if the entry notice had never been given in relation to it.

HMRC can also issue a cessation notice to the operator of a RIF, when certain conditions are met, outlined at IFM9660.

When an entry notice is revoked, or a cessation notice is issued, this can result in the withdrawal of any seeding relief claimed by the RIF.

There is no right of appeal against the withdrawal of seeding relief itself, however HMRC’s decision to issue such a notice is appealable within 30 days of it being given.

Where the operator of the RIF appeals the decision (to issue one of the notices specified above), the operator of the RIF may also apply for postponement of the tax chargeable on withdrawal until the appeal has been determined,

The operator may apply by notice to HMRC at this address. The notice must be made before the filing date of the further return (see SDLTM50400 ) and it must contain:

• the date and any reference number of the relevant decision

• the date that the appeal against the relevant decision was made

• a copy of the further return, if filed

A postponement application follows the general rules for the postponement of tax. See ARTG2100