Remedy
Start free

Section 56: Payment of tax where there is a further appeal

Taxes Management Act 1970 · 1970 c. 9View on legislation.gov.uk

Part V: APPEALS AND OTHER PROCEEDINGS

This section applies if a party to an appeal against an assessment (the "initial appeal") makes a further appeal.

Tax is payable or repayable in accordance with the determination of the court or tribunal on the initial appeal, despite the further appeal having been made.

But in a case where the amount charged by the assessment is altered by the order or judgment of the Upper Tribunal or court—

if too much tax has been paid, the amount overpaid shall be refunded with such interest, if any, as may be allowed by that order or judgment; and
if too little tax has been charged, the amount undercharged shall be due and payable at the expiration of a period of thirty days beginning with the date on which HMRC issue to the other party a notice of the total amount payable in accordance with the order or judgment.

Subsection (5) applies where—

an accelerated payment notice or partner payment notice has been given to a party to the appeal under Chapter 3 of Part 4 of the Finance Act 2014 (and not withdrawn), and
the assessment has effect, or partly has effect, to counteract the whole or part of the asserted advantage (within the meaning of section 219(3) of that Act) by reason of which the notice was given.

If, on the application of HMRC, the relevant court or tribunal considers it necessary for the protection of the revenue, it may direct that subsection (2) does not apply so far as the tax relates to the counteraction of the whole or part of the asserted advantage, and—

give permission to withhold all or part of any repayment, or
require the provision of adequate security before repayment is made.

"Relevant court or tribunal" means the tribunal or court from which permission or leave to appeal is sought.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.