After completing a trial in recent months, it is confirmed that changes to the way HMRC acknowledges an option to tax (“OTT”) notification are now “business as usual”. This means that when a taxpayer notifies an OTT, HMRC will now simply issue a receipt acknowledging that it has been received. Checks on the validity of the notification will no longer be carried out. However, HMRC reserves the right to challenge notifications and take corrective action should an OTT be invalid.
The aim of this changes is to ensure that taxpayers do not assume that HMRC’s acceptance of the OTT confirmed that it was valid as it remains, and always has been, the responsibility of the taxpayer to confirm the validity of OTT notifications.
The change in process is also designed to allow HMRC’s OTT team to catch up on its backlog with the new process aiming to allow HMRC to acknowledge notifications within 30 working days.
In respect of historic OTT notifications, work has been ongoing to identify these. In future, if HMRC cannot locate valid notification of an OTT on a particular property, a request for further information will be made.
HMRC has also removed the ‘print and post’ versions of the following forms meaning they can now only be completed online:-
The relevant online form can be posted but must be fully completed before printing. It can also be emailed to HMRC at:- optiontotaxnationalunit@hmrc.gov.uk.