In an update to its Standard for Agents, HMRC has confirmed its policy on the treatment of assignments of income tax repayments to agents. Although F(No.2)A 2023 s 333 made the right to receive a repayment of income tax ‘inalienable’ – meaning that the taxpayer owns the repayment and cannot legally assign it to an agent – HMRC had allowed assignments received before 20 July 2023 to be treated as nominations. The standard has been revised to reflect the end of this practice, as had been announced in HMRC’s 27 July 2023 stakeholder digest. Nominations are still available, allowing agents to receive the repayment on the taxpayer’s behalf, but the taxpayer remains legally entitled to the repayment.
In an update to its Standard for Agents, HMRC has confirmed its policy on the treatment of assignments of income tax repayments to agents. Although F(No.2)A 2023 s 333 made the right to receive a repayment of income tax ‘inalienable’ – meaning that the taxpayer owns the repayment and cannot legally assign it to an agent – HMRC had allowed assignments received before 20 July 2023 to be treated as nominations. The standard has been revised to reflect the end of this practice, as had been announced in HMRC’s 27 July 2023 stakeholder digest. Nominations are still available, allowing agents to receive the repayment on the taxpayer’s behalf, but the taxpayer remains legally entitled to the repayment.
