VCP11532 | Breach of Walking Possession Order: Discretion, reasonable excuse and mitigation: Reasonable excuse
From HM Revenue & Customs · VAT Civil Penalties
The following are examples of circumstances where it may be appropriate to accept areasonable excuse
The goods are accidentally damaged by fire, or vehicles involved in road accidents, where temporary removal has been authorised.
The goods are stolen by a third party.
Distress action is considered excessive because the value of the goods levied upon substantially exceeds the debt.
The goods are insufficiently detailed on Form C&E 1825 or they are perishable goods or stocks in trade which are subject to rapid turnover for example tobacco products, which were disposed of while they still had some value.
There was excessive delay between the date of levy and the date of the removal leading the trader to believe we had abandoned the distress.
Note: It is feasible that the trader may believe the action to be abandoned and a court may also consider the distress to have been abandoned unless regular contact is maintained with the trader. It is however, a legal requirement that five clear calendar days (excluding the days of levy and sale) must elapse before sale of the goodsA time to pay arrangement has been agreed and the trader has reason to believe that the walking possession (distraint) agreement no longer applies.