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Extra-statutory concession – the 'Sheldon Statement' applicable to 31 March 2009

The effective removal of estoppel as a legal remedy in appeal proceedings¹ leaves taxpayers in a difficult position. HMRC's policy in such situations was, prior to 1 April 2009, set out in the following parliamentary answer. Mr Robert Sheldon said:

'Where it is established that an officer of Customs and Excise, with the full facts before him, has given a clear and unequivocal ruling on VAT² in writing, or it is established that an officer knowing the full facts has misled a trader to his detriment, the Commissioners of Customs and Excise would only raise an assessment based on the correct ruling from the date the error was brought to the attention of the registered person concerned³.'

It was subsequently confirmed that the statement referred to both written and oral rulings, including those given by telephone, fax and e-mail⁴.

It is arguable that a person who understates his tax liabilities as a result of incorrect advice gains