VAT News

Option To Tax – HMRC processes have changed


The First Revenue and Customs Brief of 2023 (1/2023) has been published and deals with the changes we’ve previously noted on HMRC’s approach to responding to taxpayers notifications of their option to tax on a property.

In brief, from the 1st February 2023 HMRC will stop issuing option to tax notification receipt letters to those emailing them to notify them of an option to tax.

Taxpayers will still use the email address and in the subject line should include:

  • The property address and postcode
  • The effective date of the option to date notification

It’s been a concern that having a notification of receipt of the option to tax would not provide the same certainty as a response from HMRC that the notification has been accepted. This is particularly an issue for lawyers when evidencing the validity of an option to tax. However, HMRC go on to say that “We will, however, respond if we need more information.”

With the difficulties that many are currently experiencing in correspondence with HMRC – letters sent recorded delivery not received apparently – one can only hope that an email application will elicit, at least, an acknowledgement that the notification has been received.

Options to tax remain an area to ensure due thought is given and the correct notifications are made – should you need help in this regard then do get in touch – will find us and we respond within 24 hours – unlike, some might say, HMRC.


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