Equitable liability

News: June 2011

Equitable liability

Equitable Liability was a little known practice in which HMRC accepted the evidence of time-barred returns, accounts, claims etc where there was a tax debt but no longer any legal right to adjust the liability.

The amount of the legal liability was not actually amended, but HMRC agreed not to pursue the difference between the original liability and the revised amount.

Following consultation, equitable liability has been replaced from 1 April 2011 by a new and statutory special relief. This is welcome news and we will always look to claim the relief when the circumstances are right and proper.