VCP11351 | Reviews and appeals: Withdrawing a penalty
From HM Revenue & Customs · VAT Civil Penalties
If it is decided to withdraw a penalty the person should be notified in writing. A copy of the letter should be forwarded to the Cumbernauld Tax Accounting Centre.
In cases where a penalty has been withdrawn after an appeal has been submitted you should ask the person to write formally to the Tribunal centre withdrawing the appeal.