Published on Friday, Finance Bill 2.0 states that “an interested person may apply to an officer of Revenue and Customs for a review of a calculation […] on the ground that the gain arising from it is wholly disproportionate”.
The review application must be made in writing and received within four tax years following the tax year in which the gains arose.
Lobler case
The change follows the 2007 case of Dutchman Joost Lobler who was ordered to pay $560,000 (£428,334, €467,552) in tax on the $1.42m he withdrew from a policy he set up with Zurich Life just two years earlier.
Lobler took his case to court and eventually won, which prompted a review by HMRC.
Manage customer expectations
Griffin said: “HMRC will have discretion on whether or not to accept. We hope that guidance will be issued by HRMC soon so advisers can manage the expectations of any customer hoping to use this from 6 April 2017.
“Guidance will be key to helping advisers understand the calculation basis HMRC is proposing and when they can apply.”
