INTM604200 - Transfer of assets abroad: The Tribunal: Decisions in principle

If the Tribunal provides a decision in principle, leaving figures to be agreed between the parties, the case-owner is responsible for securing the taxpayer’s provisional agreement. When agreement has been reached with the taxpayer, a memo containing all details - including the agreed figures - should be sent to the Tribunal Service.

The Tribunal Service will then certify the agreement without a formal hearing. The certification has the effect of formally determining the appeal in the agreed figures. The Clerk to the Tribunal will advise the taxpayer or agent of the appeal determination.

If agreement cannot be obtained, the papers should be referred back to the Solicitor, via the technical specialist in Personal Tax International (see INTM604440), so that the Solicitor can consider listing the appeal for a further hearing.

If Double Taxation Relief is being claimed (INTM602540), it is advisable to deal with the tax consequences at this stage because the tax credit can affect the amount of income to be assessed.

The letter inviting agreement of the figures should not include any detail which might be interpreted as proposing determination of an appeal under TMA70/S54. A suitable form of words for the letter is as follows:

“With reference to the hearing of the appeal on (date), and to the Tribunal’s decision in principle (then given) (issued on (date)), please let me know whether you agree that the income chargeable to income tax under the income charge / benefits charge on the basis of that decision is as follows…

This is not a proposal to settle the appeal under the provisions of TMA70/S54.

Upon receipt of your agreement, the Tribunal will be asked to give its formal order determining the appeal by (reducing/increasing) the charge to…”