CIOT has highlighted a discretionary HMRC power to withdraw notices issued to file a Self-Assessment (SA) tax return for 2012/13 onwards. It says HMRC will also consider withdrawing such notices for earlier years provided certain conditions are met.

The Finance Bill 2013 draft clauses include provisions to give HMRC a specific power to withdraw notices issued under Taxes Management Act (TMA) 1970 section 8, 8A or 12AA to file a SA tax return for 2012/13 onwards.

Prior to that legislation coming into force, HMRC will consider withdrawing such notices for earlier years.

HMRC has confirmed that it will consider withdrawing the notice issued under TMA 1970 for any 2011/12 SA returns, in particular including trust returns, if the return is not needed, eg, due to all income having ceased.

It appears the Trusts and Deceased Estates helpline may not always have responded correctly to queries about this; it may therefore be worth pursuing requests for withdrawal.

The CIOT warns that this is, however, a discretionary power and taxpayers, trustees or members acting on their behalf should not assume that such discretion will be exercised by HMRC.

If a notice for a 2011/12 notice has been issued you should assume that the return is due online by 31 January 2013, and that a late return will attract a penalty, unless the notice has been withdrawn.

HMRC has released a helpsheet setting out key questions for taxpayers to determine whether they should be in self-assessment or not.

The helpsheet is available from CIOT