ECSH90500 - Appeals and Reviews: Regulations 94 - 100

Regulations 94 – 99 set out the right to a review and/or appeal that businesses have against certain Economic Crime-Supervision (EC-S) decisions under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). 

Regulation 94 - Offer of Review 

Regulation 94 sets out that when a business is notified of a decision that can be appealed against, EC-S must offer the business a review of that decision. See Regulation 99 for details of which decisions can be appealed against. The offer of the review must be made by notice at the same time the business is notified of the original decision.  

The notification of a conclusion of a review is excluded from this regulation and is therefore not subject to a review once issued.     

More information on Regulation 94 can be found in ECSH64535 - Offer of review and ECSH93000. 

Regulation 95 - Review by the Commissioners 

Regulation 95 specifies that HMRC must review a decision if it has offered the Business a review of the decision and the business has accepted the offer of the review within 30 days of that offer being notified to it.   

If the Business has notified an appeal to Tribunal the Business cannot accept the offer of a review and HMRC must not review the decision. An appeal cannot be made until the review has reached its conclusion – see Regulation 100 below. More information on Regulation 95 can be found in ECSH64540 and ECSH93000.

Regulation 96 - Extensions of time 

Where a notice of an offer of review has been issued, a Business has 30 days (the relevant period) to accept the offer of a reviewHMRC may, within this relevant period, notify the Business that the relevant period is being extendedThe period will be extended to either 30 days from the date of the notification of the extended time or to the specific date set out within the notification of the extended time.   

HMRC can give the Business more than one notice of an extension of the relevant period.   

More information on Regulation 96 can be found in ECSH64545 and ECSH93000. 

Regulation 97 - Review out of time

When an offer of a review has been issued to a Business by HMRC but the Business has not accepted the offer of a review within the time allowed under Regulation 95 or any extended time allowed under Regulation 96, the business can submit an application for a review out of timeHMRC must review the decision if all the following apply: 

  1. The request for an out of time review is made in writing to HMRC; 

  1. HMRC are satisfied that the Business had a reasonable excuse for not accepting the offer of a review within the time allowed; and 

  2. HMRC are satisfied that the Business submitted its application for an out of time review without unreasonable delay after the reasonable excuse ceased to apply.   

More information on Regulation 97 can be found in ECSH64550. 

Regulation 98 - Nature of review etc 

Where an offer of a review (under regulation 95) has been accepted by the business (or a late application under regulation 97 has been accepted by HMRC), an independent team in HMRC (SOLS) will undertake the review and issue the conclusion.   

Regulation 98 sets out that the nature and extent of the review must be appropriate in the circumstances and must take into account the steps taken before the review: 

  • by HMRC in reaching the decision made; and 

  • by the Business seeking to resolve the disagreement about the decision, including any representations made by the Business (where those representations were made at a time which gave HMRC a reasonable opportunity to consider them prior to making their decision).   

HMRC must conclude the review, by giving notice to the business, within 45 days of receiving the acceptance of an offer of a review (or the date on which HMRC decided to undertake a review following a late application) unless alternative dates have been or need to be agreed between HMRC and the BusinessThe review may conclude that the decision is upheld, varied or cancelled.   

In the unlikely event that HMRC does not give the conclusions of a review within the specified timeframe, the review is treated as concluding that the decision is upheldHMRC must notify the business that this is the case.    

More information on Regulation 98 and reviews see ECSH64555 and ECSH93000. 

Regulation 99 - Appeals against decisions of the Commissioners 


Appealable Decisions

Regulation 99 specifies that supervisory decisions made by HMRC have a right of appealThese are: 

  • A fit and proper decision under regulation 58, where HMRC determines that the person (business or relevant individual) is not fit and properA decision that a person is not fit and proper because the person has an unspent schedule 3 conviction is not an appealable decision; 

  • Refusal to register an applicant under regulation 59(1);  

  • Suspension or cancellation of the business’s registration under regulation 60; 

  • Imposing a financial penalty or publishing a censure statement under regulation 76; 

  • Imposing a prohibition on management under regulation 78. 

  • A direction under regulation 25(2); 

Agreement prior to a Tribunal  

Part 5 (specified sections) of the Value Added Tax Act 1994 has effect which, where an appeal has been made, provides for an agreement to be reached between the parties (the Business (appellant) and HMRC) before the appeal is determined by a tribunalThe agreement, whether in writing or otherwise, will treat the decision under appeal as: 

  • Upheld without variation, or 

  • Varied in particular manner, or 

  • Discharged or cancelled. 

Where an agreement reached is not in writing, the terms agreed must be confirmed in writing by either HMRC giving notice to the appellant or the appellant giving notice to HMRC.   

If, within 30 days of the agreement being reached, the appellant gives notice in writing to HMRC that it wishes to repudiate or resile from the agreement, the agreement will no longer have effect. 

This scenario is quite rare within EC-S, with ADR being more common. For more information see ECSH92000. 

Withdrawing an Appeal  

Where a Business notifies HMRC, whether orally or in writing, that it no longer wishes to proceed with the appeal, HMRC has 30 days to give notice indicating it is unwilling that the appeal should be treated as withdrawnWhere notice is given by the appellant and HMRC does not give notice within 30 days the appeal is treated as being upheld without variation.  

More information on Regulation 99 see ECSH64560, ECSH92500, ECSH93000 and ECSH93500. 

Regulation 100 – Appeals against decisions of the Commissioners: procedure 

Regulation 100 specifies that: 

An appeal under regulation 99 must be made within 30 days beginning on the date of notice notifying the decision or if later, the end of the relevant period where a notification of an extended time was given under regulation 96. 

Where HMRC is required to undertake a review under regulation 95, an appeal cannot be made until HMRC has notified the Business of the conclusion of the review.  Any appeal must be made within 30 days of that date. 

Where HMRC is requested to undertake a review out of time, under regulation 97, an appeal cannot be made unless HMRC has notified the Business whether or not a review will be undertakenIf HMRC has notified that an out of time review will be undertaken, no appeal can be made until HMRC has notified the Business of the conclusion of the review but must be made within 30 days beginning of that dateIf HMRC notifies the Business that it will not undertake an out of time review, an appeal can only be made if the tribunal gives permission to appeal.  

Where HMRC does not complete the review within the specified time (and thus the decision is deemed to be upheld), an appeal can be made within 30 days of the date by which the review should have concluded (that date being either 45 days after HMRC received notification that the Business accepted the offer of a review, or an alternative date for the conclusion of the review agreed between HMRC and the Business).   

Where an appeal is not made by the dates set out above, an appeal can still be made where the tribunal gives permission.