COVID-19: changes to notifying an option to tax land and buildings

HMRC have further extended the temporary changes to the process for notifying an option to tax land and buildings during the COVID-19 pandemic. The extended deadline of 90 days for notifying a decision to opt to tax will now apply to all decisions made between 15 February 2020 and 31 July 2021. HMRC will also HMRC accept electronic signatures in appropriate circumstances.

Background

In normal circumstances, it is necessary to notify a decision to opt to tax land and buildings to HMRC within 30 days by either printing and sending to HMRC the notification, signed by an authorised person within the business, or emailing a scanned copy of the signed notification. Due to the challenging conditions for businesses brought on by the pandemic, HMRC have announced a temporary change to make it easier for businesses to notify options to tax.

Changes to the process for notifying options to tax

HMRC previously published guidance setting out temporary changes to the process for notifying an option to tax land and buildings during the COVID-19 pandemic. HMRC extended the deadline for notifying options to tax to 90 days from the date the decision to opt was made and will also now accept electronic signatures in appropriate circumstances.

That guidance has now been updated so that the extended deadline will now apply to decisions to opt a property made between 15 February and 31 July 2021. Notifications may be emailed to optiontotaxnationalunit@hmrc.gov.uk.

In addition, businesses may now submit the relevant form with an electronic signature. However, HMRC will need evidence that the signature is from a person authorised to make the option on behalf of the business. Examples of supplementary evidence include emailing the form:

• with an email from the authorised signatory to the sender within the business, giving authority to use the electronic signature;
• from the authorised signatory with their sign off in the email and the form; and
• with an email chain or a scan of correspondence showing the authority given by an authorised signatory.

Where an option to tax is being notified by an agent on behalf of the business and the relevant form is submitted with an electronic signature, it will be necessary to provide proof both that the signature is from a person authorised to make the option on behalf of the business and that authority has been granted by the business to the agent to use the electronic signature. Examples provided include emailing the form:

• with a current email from an authorised signatory of the customer's business, giving authority to use the signature and send it to HMRC on their behalf; and
• with a scan of correspondence showing authority is granted by an authorised signatory to use their electronic signature on the form and to also send this form to HMRC on their behalf.