HMRC Procedural Changes For Processing Option To Tax Notifications From 1 February 2023

HMRC has issued Revenue and Customs Brief 1 (2023) following its recent consultation on the option to tax process.

From 1 February 2023, HMRC will not:

• perform extensive validity checks on options to tax;
• provide any form of written acknowledgment letters;
• provide any letters of receipt;
• check and provide copies of previous options to tax made, except in limited circumstances.

These are significant changes which will have an impact on all real estate transactions or business sales involving land and property assets. It will become even more important for persons opting to tax to check these have been properly notified and approved by the correct person, and to keep detailed records on file - not always easy when options to tax have been made in the dim and distant past.