Section 49E — Taxes Management Act 1970: Nature of review etc

Nature of review etc 49E 1 This section applies if HMRC are required by section 49B or 49C to review the matter in question.

2 The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

3 For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

a by HMRC in deciding the matter in question, and b by any person in seeking to resolve disagreement about the matter in question.

4 The review must take account of any representations made by the appellant at a stage which gives HMRC a reasonable opportunity to consider them.

5 The review may conclude that HMRC ’s view of the matter in question is to be—

a upheld, b varied, or c cancelled. 5A See section 49EA concerning additional conclusions a review can reach in the case of penalties under Schedule 24 to the Finance Act 2021. 5B See section 217N of TIOPA 2010 concerning the application of this section in the case of an assessment of a company’s unassessed transfer pricing profits under Part 4A of that Act.

6 HMRC must notify the appellant of the conclusions of the review and their reasoning within—

a the period of 45 days beginning with the relevant day, or b such other period as may be agreed.

7 In subsection (6) “relevant day” means—

a in a case where the appellant required the review, the day when HMRC notified the appellant of HMRC ’s view of the matter in question, b in a case where HMRC offered the review, the day when HMRC received notification of the appellant’s acceptance of the offer.

8 Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in subsection (6), the review is to be treated as having concluded that HMRC ’s view of the matter in question (see sections 49B(2) and 49C(2)) is upheld.

9 If subsection (8) applies, HMRC must notify the appellant of the conclusion which the review is treated as having reached.