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Published on 17 May 2023

Finance Bill briefing: Clause 332: Right to repayment of income tax to be inalienable

We broadly welcome that clause 332 introduces a new provision, effective 15 March 2023, which renders void assignments of income tax repayments. This means that taxpayers will no longer be able to assign their rights to an income tax repayment to a third-party repayment agent – including those who have been tricked or misled into doing so by an unscrupulous agent. However, we think that issues remain around the nomination process – an alternative way of enabling an agent to receive a repayment.

LITRG Submission: Finance Bill briefing: Clause 332: Right to repayment of income tax to be inalienable

We have therefore produced a briefing for MPs as part of the Finance Bill debates. This briefing seeks commitments from HMRC and proposes an amendment:

  • We propose an amendment that requires HMRC to carefully monitor the impact of the provision on taxpayers and their ability to obtain refunds. The monitoring should include metrics such as the total number of refund claims made and the total number made via third party companies.

  • We seek HMRC’s commitment that they will pay more attention to the repayment agent-taxpayer relationship and take more of a consumer protection focus than they have previously.

The full briefing can be downloaded here

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