Changes to HMRC Option to Tax Process – effective from 1 February 2023

Published 31 enero 2023

Following a consultation period which ended on 28 November 2022, HMRC has confirmed that, from 1 February 2023, it will no longer issue letters acknowledging receipt of a Notification of Option To Tax (Notification).

Under this system, where a Notification is submitted to HMRC via email (optiontotaxnationalunit@hmrc.gov.uk) an automated email response will be generated. This receipt should be retained and saved alongside a copy of the email sent with the Notification, as evidence of receipt of the Notification by HMRC. If the Notification is submitted by means other than by email to the address above, no acknowledgement will be issued.

HMRC have also confirmed that from 1 February 2023 they will no longer respond to a request for confirmation as to the existence of an Option to Tax unless:

1. the effective opted date is likely to be over 6 years ago; or
2. the party making the request has been appointed as a Law of Property Act Receiver, or an Insolvency Practitioner to administer the property in question, in which case the letter or deed of appointment should accompany the request.

If these conditions apply, when making your request, you should also provide the following:

• Name of the Business/person who had opted to tax the property 
• A VAT Registration Number (if applicable)
• The full address of the land/property in question, including postcode. 
• The effective date of the option to tax if known.
• The date you first charged VAT on the opted land/property. 
• The date the property was acquired and/or a loan was taken out by the opter on the relevant property.