Value Added Tax Act 1994
221.—(1) Section 84 (further provisions relating to appeals)(1) is amended as follows.
(2) Omit subsection (2).
(3) For subsection (3) substitute—
“(3) Subject to subsections (3B) and (3C), where the appeal is against a decision with respect to any of the matters mentioned in section 83(1)(b), (n), (p), (q), (ra) or (zb), it shall not be entertained unless the amount which HMRC have determined to be payable as VAT has been paid or deposited with them.”.
(4) For subsection (3A) substitute—
“(3A) Subject to subsections (3B) and (3C), where the appeal is against an assessment which is a recovery assessment for the purposes of this subsection, or against the amount of such an assessment, it shall not be entertained unless the amount notified by the assessment has been paid or deposited with HMRC.”.
(5) After subsection (3A) insert—
“(3B) In a case where the amount determined to be payable as VAT or the amount notified by the recovery assessment has not been paid or deposited an appeal shall be entertained if—
(a)HMRC are satisfied (on the application of the appellant), or
(b)the tribunal decides (HMRC not being so satisfied and on the application of the appellant),
that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship.
(3C) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the tribunal as to the issue of hardship is final.”.
(6) In subsection (4) in paragraphs (a) and (b) and in the words following paragraph (c) for “the Commissioners” substitute “HMRC”.
(7) In subsections (4ZA), (4A)(a), (4C), (4D), (7), (7ZA) and (7B) for “the Commissioners” substitute “HMRC”.
(8) In subsections (4ZA)(a), (5), (6), (6A), (6B), (7), (7A), (7ZA) and (7B) for “83” substitute “83(1)”.
(9) In subsection (4E) for “the Commissioners satisfy” substitute “HMRC satisfies”.
(10) Omit subsection (8).
(11) In subsection (9)—
(a)after “section 14” add “or 15A”;
(b)in paragraph (b) for “the Commissioners” substitute “HMRC”;
(c)at the end of paragraph (b) insert “and”; and
(d)after paragraph (b) insert—
“(c)a review is not being undertaken following a request under section 14A of that Act; and
(d)a review is not being undertaken under section 15 of that Act as a consequence of section 15B(3), 15C(3) or 15E(3) of that Act.”.
(12) In subsection (10)—
(a)for “a decision of the Commissioners” substitute “an HMRC decision”;
(b)omit “by them”.
Section 84 has been amended by sections 31 and 162 of, and Part VI of Schedule 29 to, the Finance Act 1995 (c. 4), section 31(4) of the Finance Act 1996 (c. 8), sections 31(3) and 45(3) of the Finance Act 1997 (c. 36), paragraph 4 of Schedule 2 to the Finance Act 1999 (c. 16), section 23(3) of the Finance Act 2002 (c. 23), section 17(7) and 18(3) of the Finance Act 2003 (c. 14), paragraph 5 of Schedule 2 to the Finance Act 2004 (c. 12), sections 21(1) and (5) of the Finance Act 2006 (c. 25), section 93(9) of the Finance Act 2007 (c. 11) and article 3(1) of 2008/1146.