Update on the Process for Option to Tax Notifications

Update on the Process for Option to Tax Notifications

Changes in Acknowledgement Procedures

As of 1st September 2022, HMRC has updated its process for acknowledging option to tax notifications. The previous system of issuing acknowledgement letters has been replaced with a new procedure, where a receipt letter is provided. This letter serves as confirmation that the option to tax notification has been successfully received and recorded by HMRC.

Please note, from 1st February 2023, HMRC will discontinue the practice of sending receipt letters for option to tax notifications. Notifications submitted to HMRC prior to this date will receive a standard receipt.


Submission Instructions

For submitting an option to tax notification, please use the following email address: [email protected]. Ensure the email subject line includes:

  • The property address, with postcode.
  • The effective date of the option to tax.

An automated email response will confirm receipt of your notification, including the date it was received by HMRC. It’s important to retain this confirmation for your records.
Notifications sent through methods other than email will not receive an acknowledgment or receipt. However, HMRC may reach out if additional information is required.
These changes do not affect the handling of belated notifications by HMRC.


Confirming an Option to Tax

It remains your responsibility to maintain records of your option to tax, as part of your business documentation, for at least 6 years. For further details, refer to:

  • VAT Notice 700/21 (Section 2)
  • Guidelines on charging, reclaiming, and recording VAT

HMRC will respond to inquiries about an option to tax if:

  • The effective date of the option is over 6 years prior.
  • You are acting as a Land and Property Act receiver or an insolvency practitioner for the property.

In such cases, you will need to provide specific details regarding the property and your appointment.


Required Information

When making a request, please include:

  • The name of the business or individual who opted to tax the property.
  • VAT registration number (if applicable).
  • Full address of the property, including postcode.
  • Effective date of the option to tax (if known).
  • Date VAT was first charged on the property.
  • Acquisition date or loan date for the property by the opter.


Additional Notes for Agents and Groups

  • Agents must confirm their representation upon submission.
  • For those with VAT group registrations, the relevant group number must be provided.



For any questions regarding this update, please email [email protected] with ‘R&C Brief 1/23’ in the subject line.

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