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Tax Collection: Exemptions

Question for Treasury

UIN 88707, tabled on 7 December 2021

To ask the Chancellor of the Exchequer, what standards or criteria are used by HMRC to assess whether to apply a discretionary exemption from tax collection for a person who has been a victim of fraud.

Answered on

15 December 2021

HMRC is a non-ministerial Government department created by statute. Its powers and duties are defined by law and it must abide by what the law says.

There are circumstances where HMRC can exercise its discretionary powers not to collect tax that is legally due. The circumstances in which the Commissioners can exercise their discretion under these powers are set out in case law and are tightly defined. Further details are provided in HMRC’s Admin Law Manual published here: https://www.gov.uk/hmrc-internal-manuals/admin-law-manual/adml3100

Answered by

Treasury